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The
prime minister said that the federal government will provide
funds alongside private investors. The money will help finance
projects that Carney's government is focused on building, as
Canada seeks to diversify away from the United States.
U.S. President Donald Trump has been threatening Canada’s
economy and sovereignty with tariffs, most offensively by
claiming Canada could become the 51st U.S. state.
“Many of our former strengths built on our close ties to the
United States have become our weaknesses,” Carney said. “The
U.S. has changed. That’s their right and we are responding. That
is our imperative.”
Carney is a former two-time central banker in England and
Canada, as well as ex-chair of Bloomberg's board of directors.
“We take a lesson from other jurisdictions that had the
foresight many decades ago to start sovereign wealth funds,”
Carney said, “In some cases, they began with a domestic focus,
then outgrew the scale of the domestic focus.”
Sovereign wealth funds invest in assets such as stocks, bonds
and real estate. They are typically funded by a country’s
budgetary surplus, which Canada currently doesn't have. The
announcement came a day before Carney's government is due to
announce its spring economic update.
There are more than 90 sovereign wealth funds around the world
that manage more than $8 trillion in assets, according to The
International Forum of Sovereign Wealth Funds, a London-based
organization made up of roughly 50 of these entities.
Trump ordered the creation of U.S. sovereign wealth fund last
year. In the U.S., more than 20 sovereign wealth funds exist at
the state level, according to an analysis by the Center for
Global Development, a Washington-based nonpartisan think tank.
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