World Economy

Canada Economy May Be Underperforming

Canada Economy May Be UnderperformingCanada Economy May Be Underperforming

One of Canada’s weakest economic expansions isn’t stopping the country’s assets from handing investors the best returns in seven years. Combined gains of the loonie and total returns for Canadian government bonds and stocks reached 26% this year through Aug. 19, the best performance since 2009, according to data compiled by Bloomberg. Equities led gains with the highest return among 24 developed markets after New Zealand, followed by the loonie, the third-best performer among Group-of-10 countries. The asset surge is against a back drop of the slowest two-year pace of growth outside a recession in at least 60 years. Last year’s collapse in oil prices has sapped activity, manufacturing has yet to rebound and concerns are rising about an overheated real estate market. It’s not enough to discourage investors, both domestic and abroad, who are increasingly left with little choice over where to put their money.