BUSINESS

Is There A Bright Side To the Shrinking Loonie?

01/15/2016 03:55 EST | Updated 01/16/2016 12:59 EST

The Canadian dollar continues to dive past the 70 cent mark and the free fall could continue, according to one analyst.

There's no question about it — a falling loonie creates economic challenges and hurts consumers. But amidst all the gloominess, is there any good that can come from our lagging loonie?

"Yes, absolutely. In the medium and long run, a lower dollar is good for Canada," says HuffPost senior business editor, Daniel Tencer.

Our exports are now cheaper along with our labour, Tencer explains. It's 30 per cent cheaper to hire a Canadian compared to two years ago, he says. However, these effects won't be felt overnight.

"A lot of companies making decisions on where to set up shop will choose Canada now where they wouldn't have chosen Canada before. But that's a long-term effect. It takes a long while for business investment decisions to be made."

Watch the video above to find out more about what good can come out of our dollar dilemma and what bigger impacts lie ahead for the average Canadian.

It's the one thing you should know today.