Canada's gradual export recovery, particularly in terms of volumes, reflects the fragile US economic turnaround and the runaway Canadian dollar; which has been pushed up in the wake of the commodities boom and strong investment portfolio demand. The pace of Canada's export recovery will continue to be gradual; benefiting from high export prices, but without the robust increase in volumes, which would otherwise measurably help to reduce unemployment and narrow the disinflationary output gap.
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