RBC: Canadian Economy On its Way for Growth

X

Hello there! You are new here, you might want to subscribe to our email Newsletter for our Daily Updates.

In the latest forecast from RBC Economics, it suggests that the Canadian Economy is on its way to show some growth in the third quarter.

Craig Wright, RBC chief economist says that improved markets, low borrowing rates and the economic stimulus have moved the Canadian economy forward.

With these factors in play, we see the result as RBC predicts the economy will grow 2% in the third quarter and by 2.4% in the fourth quarter.

It says a sharp rebound in auto production and a recovery in the housing market will be leading the recovery.

The report also projects that the Canadian economy will grow by 2.6% in 2010. These facts contradict many of the reports we have seen stating that the economy will shrink, although the numbers did get smaller since the beginning of the year.

RBC adds that consumer spending is still being weighed down by the 9.7% unemployment rate, which is predicted to be higher by the end of year.

RBC forecasts that in early 2010, the unemployment rate will begin to fall and that consumer spending will begin to increase. However, with the unemployment rate currently set to remain at a historical high, inflation is expected to remain below the Bank of Canada’s mid-point target of 2%.

Related Posts

• Housing Affordability Increases as Home Prices Rises
• RBC: Canadian Economy in for a Major Rebound
• Canadian Growth Outlook Gloomy
• RBC Economics: Canada on the Path for Recovery in 2010
• Canadian Economy Slows Down