Canada’s economy will grow at a fair clip in 2010, but not fast enough. Economists predict the Canadian economy will emerge from recession to grow by an annualized 2.5 percent in 2010.
The domestic economy has been aided in part by the Bank of Canada slashing rates to an all-time low near zero, where it has pledged to keep them until the end of June next year as long as inflation stays in check. The Canadian dollar could spend some time at par with the U.S. currency this year, but it is likely to weaken gradually overall. Economic growth is not expected to be forceful enough to spark a monetary tightening until July at the earliest.
Canada’s unemployment rate will average 8.4 percent this year, and rise as high as 8.6 percent during the first half of 2010.
Housing starts are expected to average 173,000 units in 2010. For 2011, housing starts are forecasted to rise to 180,000 units.
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