Forex Flash: Canadian prospects to climb in 2013 – RBC
FXstreet.com (Barcelona) - Dawn Desjardins, Economist at the Royal Bank of Canada believes that in 2013, Canada's economy is forecasted to return to a firmer growth path with business investment and exports getting a lift as the uncertainties associated with the US fiscal cliff dissipate.
She feels that domestic financial conditions are supportive for business investment while the persistent low interest rate environment will limit the correction in the housing market. She writes, "Consumer spending is also likely to remain solid given the healthy labour market and the prospect of wage gains accelerating. Government restraint will be limited compared to most other countries. After experiencing a volatile and highly uncertain 2012, we expect Canada's economy to grow by 2.4% in 2013 and 2.8% in 2014. This forecast implies that the output gap will be eliminated in early 2014. "
She feels that domestic financial conditions are supportive for business investment while the persistent low interest rate environment will limit the correction in the housing market. She writes, "Consumer spending is also likely to remain solid given the healthy labour market and the prospect of wage gains accelerating. Government restraint will be limited compared to most other countries. After experiencing a volatile and highly uncertain 2012, we expect Canada's economy to grow by 2.4% in 2013 and 2.8% in 2014. This forecast implies that the output gap will be eliminated in early 2014. "
Free Annual Reports
