Yes, Canada has Dutch Disease
Nonetheless, Canada’s current account was in surplus for many years before the crisis, and is now expected to remain in deficit indefinitely.
The main reason? A currency at parity with the U.S. dollar means Canadian exports are at a disadvantage and will be for some time. Indeed, until companies do more to improve their efficiency to offset the effects of the higher loonie, they’ll remain at a competitive disadvantage. Bank of Canada Governor Mark Carney has highlighted this point for more than a year.
No, really, the oil sector is killing non-oil jobs. And the Conservatives are bringing in foreign guest-workers to do oil jobs.
This is how the prosperity of a country can be destroyed.