Canadian Chemical Upturn Continues

Despite some troubling signs on the economic horizon, the Canadian chemical industry is moving into the second quarter of the year with a fair degree of confidence. The new federal budget will take a bigger tax bite out of corporate earnings. Plunging oil prices will take a heavy toll in some provinces, particularly energy-rich Alberta. A weak Canadian dollar and relatively high interest rates still worry some Canadian economists. But the general consensus is that, with interest rates starting to ease, the Canadian economy will be able to overcome its other handicaps and chalk up its fourth successive year of recovery following the 1981-82 recession. Growth certainly won't keep pace with the 4.5 to 5% gross national product increases recorded over the past two years. But, at an expected 3 to 3.5%, it likely will give the chemical industry an opportunity to continue its production and sales gains. Average operating rates of Canadian chemical plants ...