Domestic spending is slowing and so is Canada’s economic growth for the rest of 2010 and 2011, according to the Conference Board of Canada’s Canadian Outlook – Autumn 2010.
“Canada’s recovery is further along than many other developed economies, especially when considering the rapid rebound in employment. But the strong rebound in late 2009 and early this year, driven by growth in the domestic economy, is losing steam,” says Pedro Antunes, director, national and provincial forecast, with the Conference Board.
“To continue on its path of recovery, Canada will need to rely on the U.S. economy to improve trade and a steady rise in private capital investment—components that are very dependent on the state of the U.S. and global economy.”
The strong start to 2010 suggests that Canada’s real GDP is likely to post growth of 3% this year, while a softer domestic economy and still-frail U.S. recovery will restrain real GDP growth to only 2.5% in 2011—down 0.4 percentage points from the summer Canadian Outlook.
