steady rate each year. Both the Total Gross Domestic Product and percentage of GDP real growth were increasing overall.Year19901995199619971998GDP (bill. of U.S. $)573966584044611602631193603978Year19901995199619971998GDP Real Growth (%)N/A2.31.63.73.1However as the numbers for 1998 indicate, the depreciation of the dollar definitely took a significant chunk out of the Total Gross Domestic Product, dropping it below 1996s levels. This is to be expected as a depreciated currency would effect the value of the products, however as pointed out before, nothing in growth rate eluded to the depreciation that took place in 1998.Inflation RateSimilar to the growth rate, the inflation rate also had nothing to offer in terms of an indication of the lowering exchange rate. In fact, as highlighted below, the inflation rate was steadily declining as 1998 approached. A trend usually linked to a healthy economy overall.Year19901995199619971998Consumer Price InflationN/A2.21.51.61.0Even the figures from 1998 indicate, the inflation rate seemed to be unaffected by the depreciation of the Canadian currency. that (increase in) performance (of Canadian companies), is due almost entirely to the depreciation of the currency and, to a much lesser extent, to the lower inflation that Canada has experienced during the last decade Therefore using the inflation rate as an economic indicator in this case is not always conclusive to the ideal that the dollar should have been in good shape, with a thriving economy.Dollar ReservesAgain, looking at the numbers of dollar reserves, no significant trend seems to point in the direction of increased weakening.Year19941995199619971998Dollar Reserves (mil of U.S. $)392-2710-54982392 N/AThe fluctuations in the numbers seem to be quite normal and constant throughout Canadas time of both economic prosperity and slowdown.Trade BalanceThe trade balance however starts to show a different story. The numbers up to 1997...
