TORONTO -- Experts say the plunging loonie could actually help Canada weather a global economic slowdown, by making exports more competitive in the United States and elsewhere.

However, the impact on North Country retailers might not be so positive.

Canada's manufacturing sector suffered as the dollar soared above parity with the U.S. greenback last year for the first time in decades, making Canadian goods relatively more expensive and hurting export-based industries, particularly the auto and forestry sectors.

One hope for Canadian exporters is that the loonie's drop may soften the impact of a worldwide recession.

"It will help, but to the extent that the weak Canadian dollar is also a symptom of poor global economic growth, it's more of a cushioning of the recession rather than a cure for it," said Avery Shenfeld, a senior economist with CIBC World Markets.

He said the Canadian economy is too tightly intertwined with its American counterpart -- reeling from the continued financial meltdown -- for the currency exchange rate to reverse its woes completely.

The Canadian dollar closed Wednesday at 79.70 cents US, down 2.69 cents from the previous close.

The loonie -- which hit its all-time high of 110.31 cents US almost a year ago, last Nov. 7 -- hasn't been below 80 cents since mid-2005.

Local impact

North Country retailers and tourism leaders said Canadian's flocked to the area during the last few years, when their dollar was strong compared to its U.S. counterpart.

Champlain Centre mall reported traffic counts were up 27 percent through this summer. That was after a 50-percent increase in 2007 and a 400 percent increase in 2006, roughly when the Canadian dollar began to rise.

The mall parking lot was packed Columbus Day weekend, at least partly due to Canadian shoppers coming to Plattsburgh for the opening of Target.

The Plattsburgh-North Country Chamber of Commerce reported traffic counts at the Champlain border crossing were up 4 percent, about 80,000 visitors. That was despite construction that increased the wait to cross the border.

Liquor and Wine Warehouse saw an 80-percent increase in business with Canadian customers this summer.

Occupancy rates at area hotels increased from 60.9 percent in 2006 to 68.5 in 2007 and 73.3 in 2008. The latter figure is expected to decrease because fall and winter, with the exception of foliage season, is typically slow.