This quarterly economic forecast provides highlights of the Canadian Outlook report, which presents the short-term national outlook.
Canadian Outlook Economic Forecast: Winter 2012
Canadian Outlook Economic Forecast: Winter 2012
Canadian Economic Analysis
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- A volatile global environment has caused us to pull back on our outlook for Canada’s economy. Real GDP is now forecast to advance by 2.1 per cent in 2012, down from 2.4 per cent forecast in our autumn 2011 Canadian Outlook.
- Recent indicators suggest that, assuming the eurozone manages to avoid collapsing even deeper into crisis, the United States will perform slightly better in 2012 than it did in 2011.
- Stable food and energy prices will bring inflation back under control this year, allowing the Bank of Canada to hold off longer on rate hikes.
- Despite rock-bottom interest rates, households will struggle with high debt levels. Combined with softer growth in business investment and public sector restraint, this will contribute to a soft domestic economy in 2012.
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