VICTORIA, British Columbia, Sept 28 (Reuters) - Canada will become less reliant on demand from the U.S. economy, now its largest export market, as the global economy rebalances, Bank of Canada Governor Mark Carney said on Monday.
'The U.S. domestic market is going to be relatively less important going forward. It doesn't mean it's going to be unimportant. It's still the largest economy in the world,' he said.
'It won't be as dominant as it was because there is a multiyear adjustment that's going to have to be undertaken in that economy to reduce the overhang of consumer debt, an undercapitalized financial system and a fiscal adjustment which ultimately will have to begin once we get out of this.'
Carney made the comments to reporters following a speech in Victoria.
(Reporting by Allan Dowd, writing by Jeffrey Hodgson; editing by Peter Galloway) Keywords: CANADA ECONOMY/CARNEY US (jeffrey.hodgson@thomsonreuters.com; 416 941 8099; Reuters Messaging: jeffrey.hodgson.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'The U.S. domestic market is going to be relatively less important going forward. It doesn't mean it's going to be unimportant. It's still the largest economy in the world,' he said.
'It won't be as dominant as it was because there is a multiyear adjustment that's going to have to be undertaken in that economy to reduce the overhang of consumer debt, an undercapitalized financial system and a fiscal adjustment which ultimately will have to begin once we get out of this.'
Carney made the comments to reporters following a speech in Victoria.
(Reporting by Allan Dowd, writing by Jeffrey Hodgson; editing by Peter Galloway) Keywords: CANADA ECONOMY/CARNEY US (jeffrey.hodgson@thomsonreuters.com; 416 941 8099; Reuters Messaging: jeffrey.hodgson.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.