Canada’s currency: It’s worse than you think

LISA MASCARO and JOHN ALFRED READY | CNN • Updated 27th August 2016

(CNN) — Beyond the annus horribilis of debacles and negotiations, 2016 is shaping up to be an absolutely miserable year for the Canadian dollar.

Trudeau’s government tries to grow the economy as dollar struggles

The loonie was down 16% from a year ago Friday after slumping again against the dollar Friday as trade protectionism and other global economic troubles showed no signs of easing.

Scores of economists have cut their forecasts for the loonie, Canada’s widely known currency, or predicted it will fall further.

The loonie has lost nearly 20% against the U.S. dollar since October.

Analysts say the Canadian economy is losing its luster as Brexit-related shockwaves erode the enthusiasm for foreign investments.

Sluggish global economy takes toll

Aside from uncertainty over Brexit, Canada’s the economy has been hurt by the United States, which has been the country’s chief export market.

The United States is grappling with a weakening growth outlook as recessions in Europe and China plague a heavily indebted world economy.

The Canadian government has faced relentless criticism for its failure to act more aggressively on a tepid economy and slow job growth, eroding its popularity.

The disappointing outlook came from two top economic studies released last week.

A poll by the polling company Abacus Data found that only 18% of Canadians supported Trudeau’s Liberal government compared to 71% who disapproved.

Another poll by the Angus Reid Institute found that Trudeau’s approval rating had plummeted 30 points since last October, after the Liberals suffered a big defeat in Alberta and ended up electing two opposition parties that oppose its policy agenda.

It’s why so many people blame Trudeau for the Canadian economy’s woes, said Albert Lai, a political scientist at Simon Fraser University in British Columbia.

There have been more missteps than successes since Trudeau’s government came to power last fall, Lai said.

In April, Trudeau was publicly chastised for letting little-known candidate Maxime Bernier get a promotion to lead the Conservative Party in the country’s next election.

Bernier revealed earlier this month that his 2015 French-language campaign website had a racial slur against France in it.

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