This quarterly economic forecast provides highlights of the Canadian Outlook report, which presents the short-term national outlook.
Canadian Outlook Economic Forecast: Winter 2006
Canadian Outlook Economic Forecast: Winter 2006
Canadian Economic Analysis
$465.00
- The high-flying loonie will continue to hamper overall trade performance this year.
- Rising financing costs and higher energy prices will soften the recent spree in household spending. Real consumer spending will advance by 3 per cent in 2006, down from growth of nearly 4 per cent last year.
- The Canadian economy remains healthy, with growth expected to average 3 per cent over 2006 and 2007, although regional performance is mixed.
- Hurricane rebuilding, a better trade performance and strong business investment will sustain economic growth of 3.5 per cent in the United States this year despite weaker household spending.
- Energy prices have come off their post-Katrina highs, but the expectation of higher interest rates in Canada has kept the loonie elevated; it is forecast to average just under US$0.85 in 2006.
- Despite tightening labour markets and higher energy prices, consumer price inflation remains subdued. And, since rising interest rates provide a double bang to monetary tightening with their positive influence on the value of the Canadian dollar, the Bank of Canada is expected to lift rates by only 50 basis points this year.
- Liberal or Conservative? Either election platform, if implemented, would stimulate economic growth further than that assumed in the current outlook.
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