1. CANADA-BRAZIL: OPPORTUNITIES IN A DIFFICULT TIME Craig Alexander SVP & Chief Economist TD Bank Group

2. GLOBAL ECONOMY STRUGGLING 2

3. NORTH AMERICA OUTPERFORMING 3

4. GLOBAL SLOWDOWN HAS LED TO COMMODITY CORRECTION… 4

5. … BUT CANADA WILL REMAIN AN OUTPERFORMER 5

6. 6 TO UNDERSTAND WHY, NEED TO UNDERSTAND CANADIAN ECONOMY

7. SMALL IN SCALE, BUT SECOND RICHEST PER CAPITA IN G7 7

8. MEDIAN INCOMES IN CANADA HIGHER THAN THE US, EVEN AFTER TAXES 8

9. 9 HIGHLY EDUCATED POPULATION 4th HIGHEST SHARE OF UNIVERSITIES IN GLOBAL TOP 250 Source: Times Higher Education, TD Economics

10. WITH THE LOWEST DEBT IN THE G7 10

11. WELL ANCHORED INFLATION, PRUDENT MONETARY POLICY 11

12. EASY TO DO BUSINESS & SOUNDEST BANKS IN THE WORLD 12 World Bank 2015 Ease of Doing Business IndexSoundness of banking system Source: World BankSource: World Economic Forum

13. COMPETITIVE CORPORATE TAX RATES 13

14. DIVERSIFIED ECONOMY 14

15. DIVERSIFIED EXPORT SECTOR 15

16. CANADA IS AMONG THE MOST OPEN TO TRADE 16

17. CANADIAN ECONOMY STRONGLY TIED TO THE U.S. ECONOMY 17

18. CANADA CONTINUES TO PURSUE TRADE DEALS AND OPPORTUNITIES 18

19. OPPORTUNITY FOR MORE TRADE WITH BRAZIL 19

20. BILATERAL TRADE EXPANDING, BUT LOTS OF OPPORTUNITY FOR MORE 20

21. CANADA IS OPEN TO INVESTMENT 21

22. CANADA'S LONG-TERM GROWTH OUTLOOK BY SECTOR 22

23. CANADA'S PRODUCTIVITY CHALLENGE 23

24. SOLUTION: ECONOMY SHIFTING TOWARDS SERVICES… 24

25. …AND HIGHER VALUE ADDED MANUFACTURING 25

26. CANADA AND BRAZIL FACE MANY COMMON CHALLENGES Both must cope with the weak global economy that is fraught with risk Cannot count on commodities to fuel growth in the near term, but will benefit when global demand recovers Monetary policy must constrain inflation, while promoting growth Governments must run sound fiscal policy and respect budget limits, but also invest in core public priorities – including infrastructure Promoting exports and investment can make economy less reliant upon domestic demand Going abroad creates opportunities, but also means firms must strive to be competitive, productive and innovative Policy makers must always look for ways to boost or enhance competitiveness Challenges are often opportunities to unlock potential 26

27. www.td.com/economics This report is provided by TD Economics for customers of TD Bank Group. It is for information purposes only and may not be appropriate for other purposes. The report does not provide material information about the business and affairs of TD Bank Group and the members of TD Economics are not spokespersons for TD Bank Group with respect to its business and affairs. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. The report contains economic analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. The Toronto-Dominion Bank and its affiliates and related entities that comprise TD Bank Group are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered. @CraigA_TD 27