New BoE boss to swap Canada growth for UK stagnation

Tue Nov 27, 2012 11:46am EST
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* British problems much deeper than Canada's

* Canadian growth seen as double Britain's

* Canada heading for balanced budget as UK struggles

By Nia Williams

LONDON, Nov 27 (Reuters) - When Canadian Mark Carney becomes Bank of England chief next year, he won't only be swapping a vast, sparsely populated, resource-rich country for a small, crowded island on the edge of a European continent in crisis.

The outgoing Bank of Canada governor will leave behind an economy which weathered the global financial crisis quite well and is now achieving respectable growth, at least by Europe's dismal standards.

Carney, whose appointment to the British central bank was announced on Monday, will face new, and in some areas uncharted, problems in an economy that has only just got out of recession.

"He's going to be coming into the job at a very difficult time," said Howard Archer, chief UK and European Economist at IHS Global Insight. "The economic challenges are far deeper than those facing Canada."

Carney, who starts the new job next July, faces some sobering contrasts.   Continued...