Economic Stability And Its Effects On The Economy Essay

718 Words Aug 4th, 2016 3 Pages
Economic stability refers to an absence of excessive fluctuations in the macro-economy. An economy where there is fairly constant output growth and low, stable inflation would be considered as a stable economy. In an unstable economy, there is frequent recessions in large amount, high inflation, frequent financial crises etc. Economic growth is an increase in the capacity of an economy to produce goods or service. It is measured in terms of GDP or GNP. In a recent survey by Gallup it has been found that about 640 million adults would migrate to another country if they are given the opportunity. Some of the top desired countries were USA, UK, Canada, Germany, France, Australia. Immigration encourages more business startups and increases economic efficiency by supplying more labor to low and high skill markets.
The Canadian economy is currently undergoing an intricate adjustment process following the collapse in commodity prices. Investments and capital expenditures has dried up since the oil production has fallen sharply. As a result, there has been increased unemployment and reduced consumer spending. But recent data suggests that the country’s economy is stable and its GDP has expanded for the first time since January. Canada’s GDP per capita in 2015 was $43,276. The economic growth is projected to strengthen in 2016 and reach 2.2% in 2017. There has been a huge reduction in foreign direct investments in Canada since last year. Export related industries are outperforming…

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