The Royal Bank of Canada (RBC) is predicting that the Canadian economy will shrink by 2.4%. This is partly due to the substantial 5.4% annual Gross Domestic Product (GDP) contraction in the first quarter.This is the worst quarterly economic performance since 1991 and probably the worst in the current recession.
RBC however predicts that growth will return next year, as the U.S. and Canadian economies benefit from low interest rates, firmer credit markets and government stimulus programs.
RBC is predicting that growth will hit 2.5% next year.
Newfoundland will lead all provinces in growth in 2010, whereas Ontario and Prince Edward Island will have the slowest growth, due to the lower energy prices this year.
RBC also claims that the national jobless rate will hit 8%, compared to the average 8.5% this year.
RBC is making a strong claim here coming out with specific predictions for the economy. I definitely see improvement in the economy in 2010 but not until the 4th quarter, at most there will be improvement in the 3rd; but that is unlikely.