Consumers and Treasuries Cash in on Strong Canadian Economy in 2007
March 4, 2008 By Greenhouse Canada
Ottawa – Buoyed by the strongest four-month run of new jobs since 2002,
the Canadian economy is expected to post growth of 2.8 per cent this
year, according to the Conference Board of Canada.
Ottawa – Buoyed by the strongest four-month run of new jobs since 2002, the Canadian economy is expected to post growth of 2.8 per cent this year, according to the Conference Board of Canada.
“A whopping 210,000 jobs have been created since November,” said Pedro Antunes, Director, National and Provincial Forecast. “Although consumers will not receive much in the way of new tax cuts compared to 2006, they will continue to have money in their pockets from new employment and strong wage gains.”
As labour markets across the country will remain tight, employment growth at this pace is unsustainable for the year as a whole. With wage gains continuing to outpace inflation, another year of robust domestic demand is expected.
Provincial coffers will benefit significantly from the strong economic growth and recently announced federal budget measures, which are to transfer $39 billion to provinces and territories over the next seven years.
In addition to ongoing strength in consumer demand, an improving U.S. economic outlook and a stable Canadian dollar will allow the trade sector to contribute modestly to overall growth for the first time since 2001. In 2008, the Canadian economy should accelerate to growth of 3.4 per cent.
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