We think the Bank of Canada's latest projections for economic growth this year and next are too high, mainly because they rely more heavily on sustained growth in household expenditures, particularly on new and existing housing. While we have no doubt that favourable financing conditions will help to buffer housing investment this year and next, we seriously doubt sustained growth is in store, particularly if we are right in expecting a correction in house prices.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services