This quarterly economic forecast provides highlights of the Canadian Outlook report, which presents the short-term national outlook.
Canadian Outlook Economic Forecast: Spring 2006
Canadian Outlook Economic Forecast: Spring 2006
Canadian
$465.00
- A pre-election personal income tax cut, post-election GST cut and a handsome prosperity payout to Albertans will boost aftertax real household income to near-record growth this year. The payout will help keep consumer spending humming.
- Strong overall economic growth of about 3 per cent in 2006 and 2007 masks the disparate results among the regions; by some measures Ontario is the worst-performing economy.
- Elevated raw material prices will keep the loonie strong, forcing even more cost reductions from Canada’s already squeezed manufacturers and farmers.
- While large fiscal and trade imbalances hang over the U.S. economy, the economy is still expected to land softly, with growth easing to below 3 per cent in 2007.
- A cut of one percentage point in the GST, assumed to come into effect in mid-May, will lower overall inflation by about 0.3 percentage points in both 2006 and 2007.
- One more rate hike is expected from the Bank of Canada this spring, bringing the Bank’s overnight target rate to 4 per cent. A strong dollar, mixed regional performance and lack of ingrained inflation will prevent further rate hikes until the fall of 2007.
Customers Who Downloaded This Also Liked
Require an accessible version of this research?
Upon request, The Conference Board of Canada offers accessible versions of research. Please contact us to request your accessible version.
Learn more about our accessibility policies.
