Greek crisis ‘serious,’ could imperil Canadian economy: Bank of Canada

OTTAWA, Ont. – Bank of Canada governor Mark Carney said the Greek debt crisis has the potential to derail the global recovery and impact Canada’s economy.

The central bank governor calls the sovereign debt crisis in Greece and other southern European countries a serious situation for both the world and Canada.

Testifying before the Senate banking committee, Carney said Greece’s problems could spill over and cause a slowdown in the global economy as markets demand governments rein in their deficits.

In Canada, that would result in higher interest rates.

A global slowdown would also cut demand for many of Canada’s resources exports to Europe and other parts of the world.