Canadian Outlook Economic Forecast: Summer 2001

This quarterly executive summary provides highlights of the Canadian Outlook that presents the short-term national outlook.

Document Highlights 

Layoff announcements still accompany the quarterly corporate earnings warnings, and certain industries remain mired in excess inventories and flagging sales. However, the “R” word has almost disappeared from newscasts; and, along with improvement in certain key indicators, the economy as a whole seems to have turned a psychological corner.

• Growth will slow to 2.6 per cent this year before rising again to 3.4 per cent in 2002.
• Huge fiscal stimulus has strengthened the economy at just the right time
• Monetary easing has run its course, and short-term rates will rise again later this year
• Exports are expected to rebound in the second quarter, thanks to strength in the auto sector
• Consumer prices will remain in check through the forecast period