Windsor's Economy to Improve Analyst Forecasts
Tuesday, April 15, 2014
The economies of Canada and the United States have always been inter-twined and few border cities understand that reality better than Windsor and Detroit.
After years of less than uplifting economic news for this area a chief economist at TD Bank Group says the tide is shifting.
Craig Alexander spoke at the Chamber of Commerce luncheon on Tuesday and says the Canadian dollar will likely slide to $0.85 in relation to the U.S. Greenback.
"That's going to be good for Canadian exporters," Alexander says. "The economy's going to improve.”
Alexander says there's a lot of pent-up demand for new cars stateside, where the average vehicle has been on the road for nearly 12-years.
He predicts exports will heat up on the strength of the manufacturing sector.
"Manufacturing in Windsor will improve. That will have a knock-down effect in lifting income, creating jobs and stronger spending in the local economy."
However, his forecast wasn't all roses for Windsor. Alexander says Canada is losing new investment in the auto sector to the U.S. and Mexico and says that trend will continue, as long as other jurisdictions throw large sums of money at auto companies.
"The amount of the subsidies from an economist’s point of view has gone way beyond what anyone would consider rational."
Because of that, his best advice is to diversify – something the chamber says is a major priority.