China and Emerging Markets More Important to Canada Since Global Financial Crisis: Scotiabank

(CBC News – The Canadian Press)

Scotiabank says Canada’s economy is on the road to recovery but the country will have to adjust to a world that has changed since the recent global financial crisis. The Canadian bank’s chief economist, Warren Jestin, says China and other emerging markets will provide a lot of the world’s future economic growth.

Jestin says Canada’s success in these markets will depend on identifying high-value products and services that can plug into global supply chains. He thinks a key source of Canadian job creation over the next decade will come from highly entrepreneurial small and medium-sized businesses.

Scotiabank also warns that governments cannot afford to use last year’s bailout of the auto sector as a model for supporting industries in crisis. Jestin says a winning strategy for government is to establish a competitive tax environment and what he calls a “world class” urban infrastructure.