Paul Martin's Business Update - March 14th, 2014

Paul Martin's Business Update - March 14th, 2014

Canada’s balance sheet is now in the black.

These are the kinds of numbers that only a banker could love but they are interesting because it provides a bit a snapshot of how Canada and Canadians are doing when compared to other nations. And we now have a positive net worth.

The latest data on our status look at the end of last year and we now have a surplus or positive position of roughly $27 billion. That compares to a negative number – exceeding $300 billion – a year earlier.

What this looks at is how much we have invested abroad, how much foreigners have here as well as how much debt both sides have. The debt usually means corporate and government bonds while the investments are stocks – the amount we have in foreign holdings and vice versa.

The reason for the big change is the Canadian dollar. A declining currency means our investments abroad are worth more on a comparative basis. To put it another way, $100 in investment in the US a year ago when our currency was at par is now worth $110.

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