Bank of Canada Official Urges U.S. to Import Less, Export More

(MarketNews.com – Courtney Tower)

The Bank of Canada Monday joined the ranks of those in America who call on the United States to export more and import less, although Canada depends overwhelmingly on sales south of the border. Senior Deputy Governor Paul Jenkins laid heavy importance for world recovery from recession on the United States, and China, reforming their policies and practices – one to reduce debt and the other to reduce savings. The alternative will be world economic growth "neither as strong, nor as sustained, as it could be," he told the Economic Club of Canada in a Toronto speech.

In the midst of powerful trends that are reshaping the world economy, as emerging nations move to total dominance in world output (up to about 55% of total output by 2020), Jenkins said, "Americans need to save more and rebuild household sector wealth." "In the future, more U.S. economic growth must come from net exports – a combination of higher exports and lower imports," he said. Read more here.