canada's federal debt was estimated to total $566.7 billion for the fiscal year 2010–11, up from $463.7 billion in 2008–09. in addition, canada's net foreign debt rose by $41 billion to $194 billion in the first quarter of 2010. however, canada's regulated banking sector (comparatively conservative among g7 nations), the federal government's pre-crisis budgetary surpluses, and its long-term policies of lowering the national debt, resulted in a less severe recession compared to other g8 nations. , the canadian economy has largely stabilized and has seen a modest return to growth, although the country remains troubled by volatile oil prices, sensitivity to the eurozone crisis and higher-than-normal unemployment rates. the federal government and many canadian industries have also started to expand trade with emerging asian markets, in an attempt to diversify exports; asia is now canada's second-largest export market after the united states. widely debated oil pipeline proposals, in particular, are hoped to increase exports of canadian oil reserves to china.