Canada’s economy is growing at its fastest in a decade, according to a Royal Bank of Canada economics report.
“Canada’s economy continued to surge ahead as domestic demand was backed by increases in consumer, housing and government spending,” said senior vice president and chief economist at RBC, Craig Wright. “Looking ahead, positive signs in the job market indicate that the recovery will continue in the near term, as private investment increases following a sharp decline during the recession and core inflation remains on target,” he said.
Unemployment rates in Canada are expected to top off at 8.0 per cent for the rest of 2010, down from a previous outlook of 8.4 per cent and 2011 will see a predicted unemployment rate of 7.3 per cent, down from a previous outlook of 7.7 per cent.
Canada’s GDP will not grow as high, as the previous outlook had it pegged at 3.9 per cent while now it’s expected to rise to only 3.5 per cent.
Economic growth in the province of Ontario is expected to reach 3.5 per cent, while Saskatchewan is predicted to have the highest rate of growth at 4.4 per cent.
“Stronger than expected economic data and higher inflation have reduced the need for emergency low interest rates, although uncertainly arising from the European debt crisis adds an element of caution to further rate increases,” said the report.
