Canadian economy poised for ‘respectable’ growth

OTTAWA — Strong demand for commodities and a rebound in the automotive sector is expected to spur economic growth in Canada by 3.2 percent this year.

According to RBC Economics’ Craig Wright, a slow but surly recovering U.S. markets and commodity price increases for goods means Canada’s GDP will continue to grow at a respectable pace over the next few months and 3.1 percent in 2012.

However, as the Globe & Mail reports, the key driver will switch from household spending to an up tick in business growth and corporate investments.

While the U.S. has not met recovery expectations over the last year, RBC suggests that disappointing U.S. economic indicators will begin to fade and the American economy should jump by 2.7 percent this year and 3.4 in 2012.

The bank also expects the loonie to remain elevated above par for the rest of the year.

Provincially, Alberta’s oil-driven economy will lead the growth with Newfoundland and Labrador following behind, says RBC.
Ontario will post average growth.