Source: The Canadian Press
The Conference Board has lowered its forecast for Canada’s growth next year, saying domestic spending has cooled and the U.S. economy has weakened.
The Ottawa-based forecaster says it now expects the Canadian gross domestic product will increase by 2.5% in 2011 over this year — four percentage points lower than its previous prediction in the summer.
It estimates 2010 as a whole will show 3% growth over last year, when Canada’s GDP shrank due to a severe global economic slowdown.
The Conference Board says that Canada’s domestic economy is losing steam and the country’s growth will rely on the U.S. and global economies.
The forecast says Canada won’t be helped by the strength of its currency, which is expected to be worth 99 cents US on average next year.
Conference Board says Canadian domestic spending cooling, U.S. weakening
Canadian Press