This quarterly economic forecast provides highlights of the Canadian Outlook report, which presents the short-term national outlook.
Canadian Outlook Economic Forecast: Summer 2009
Canadian Outlook Economic Forecast: Summer 2009
Canadian
$550.00
- U.S. economic growth is expected to be rekindled over the second half of 2009. Nevertheless, the strength of the recovery will be hampered by ongoing structural problems and weak labour markets.
- Lagging the U.S. recovery, global trade continues to collapse, as much of the developed world is facing steep contractions in demand.
- Stimulus packages the world over will start to be felt during the second half of 2009. While infrastructure spending has been slow in coming and will only peak next year, it will still be timely.
- The Federal Reserve is expected to keep interest rates at their current near-zero levels until mid-2010, by which time the recovery should be firmly entrenched. The Bank of Canada has promised to do the same.
- Canadian businesses are once again having to cope with the volatile movements of our “petro-loonie.” The Canadian dollar is forecast to average US$0.865 this year and continue to appreciate in 2010 as commodity prices head higher.
- Growth in Canada is also forecast to resume over the second half of 2009. Still, real GDP will contract by 1.9 per cent this year before recovering with growth of 2.7 per cent in 2010.
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