Everything is related in our global economy. From the 1970’s onward, economies around the world became increasingly intertwined. Today, minor incidences in one country have an almost immediate impact on the prices and the general economy in another.
The current price of gasoline, for example is being blamed on the unrest in the Middle East, especially Libya. Whether or not the big oil companies are taking advantage of the turmoil and gouging us is up for debate (they are), but uncertainty in the marketplace does lead to disruptions in supply, hording, and price rises. This is true, always.
How will protests in Libya and the Japanese earthquake aftermath affect real estate in Canada?
Don Campbell is the president of Real Estate Investment Network and the author of the best-selling Canadian real estate book Real Estate Investing in Canada. He says, “The violent protests in the Middle East and North Africa and the earthquake and unfolding nuclear crisis in Japan is going to directly affect specific real estate markets across the country. Our country is uniquely positioned to provide the world with the three ‘Fs’ – food, fuel and fertilizer – and our supply chain is safe. The inflation in these commodities will drive prices upwards and boost jobs into key areas of the country, which in turn will lead to migration of people to those regions, driving real estate and rental demand upwards. Price increases will follow.”
