Source: The Canadian Press

Canada’s economic growth will slow down this year until both Canadian and U.S. businesses and families start spending again.

The latest economic outlook by the Conference Board of Canada says real gross domestic products will grow by 2% this year — about half a percentage point lower than in the fall.

It says Canadian household debt and government deficits will lead to less spending, which stifles economic growth.

It predicts jobs will grow by less than 1% this year.

The report says the high loonie led to more businesses investing in equipment last year, which will continue into 2011.

But it warns that the dollar likely hovering around parity throughout the year will limit recovery of Canadian exports to the U.S.