Global economic situation is worrisome

Jason Henderson, Treasurer and Head of Global Markets,
HSBC Bank Canada

	Toronto: The fiscal cliff in the United States, the recession in Europe and the slowdown in China are three key economic issues that will impact the global economic situation in the near term, Jason Henderson, Treasurer and Head of Global Markets, HSBC Bank Canada, said while addressing members and guests of the Indo-Canada Chamber of Commerce (ICCC) Monday.
Henderson was speaking at the ICCC-HSBC Bank Canada joint seminar on Global Markets. He explained that the fiscal situation in the United States would not necessarily lead to a sudden fall of the cliff; there is a definite chance of a gradual slide once the tax cuts from the Bush era lapse.
	Henderson also said that the economic situation in Europe was unlikely to alter radically because while the Eurozone was a monetary union, it isn’t a fiscal union. Hence, countries such as Spain, Italy, Portugal and Greece will not willing implement austerity measures, and Germany wouldn’t be forever willing to offer bailouts.
The final cause for concern is China, where the government has taken measures to slowdown the overheated economy as it shifts focus from spending on infrastructure to enhancing local consumption. This is a significant change in emphasis and will have deep-rooted impact on the global economy, Henderson noted.
	Speaking on the occasion, Naval Bajaj, President, ICCC, said, “In the context of today’s talk by Jason Henderson I would like to draw your attention to foreign investment protection agreement that is still being negotiated between Canada and India, and to which Prime Minister Harper urged the Indian government to move expeditiously to reach a conclusion during his trip.”
“We as a Chamber are appreciative of the fact that India is a democracy where instant decisions are impossible, and that all decisions are arrived at after a thorough consideration of all factors. Nevertheless, our Chamber believes that an agreement on foreign investment would propel Canada-India trade and investment relations to more sustainable levels.”