While the probability of a systemic sovereign debt crisis remains low, and the vast majority of Canadian exporters tend to trade with other corporates, a wave of sovereign defaults across mid- to large-sized emerging markets would impact Canadian companies doing business in certain parts of the world. Additionally, as Canada’s exports continue to diversify into many of these faster-growing economies, sovereign creditworthiness will play a greater role in the outlook for Canadian trade.
Learn more here: https://www.edc.ca/en/weekly-commentary/developing-markets-sovereign-debt-risks.html
