![Craig Wright, the chief economist for Royal Bank of Canada, said this week exports alone won't likely be enough to maintain momentum in Canada's economy. “We also need the [business] investment side of the economy kicking in," he told Global News.](https://globalnews.ca/wp-content/uploads/2013/04/rbc-wright.jpg?quality=85&strip=all)
The outbound head of Canada’s central bank, Mark Carney, has panned it as Dead Money.
The instant catch phrase refers to the estimated $500 million that Canadian companies are holding in the bank, unwilling to invest the capital because of an uncertain economic outlook.
Without the injection of cash from the private sector, export sales, namely into a strengthening U.S. market place, are being looked to to keep the domestic economy going.
But according to RBC chief economist Craig Wright, exports alone can’t fully take over from consumers and households as the driver of growth.
A survey released Wednesday however calls the stockpiling of cash by companies of all sizes the “new and necessary normal.”
Get weekly money news
“The problem seems to lie in finding good, profitable growth opportunities in the face of slow economic growth and high uncertainty,” a survey, conducted by Deloitte, said.
An unexpectedly strong rebound in the United States may hopefully combat that sentiment.
“The fact that employment’s also kicking in this time, that’s all good news.”
The Deloitte survey was conducted with 106 chief financial officers of major companies across North America.
For the first time, sentiments about sales and earnings in the survey were less optimistic among Canadian CFOs than their U.S. counterparts.
Comments