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Consensus overly optimistic on 2014 growth prospects

The consensus view that economic growth will accelerate this year is misplaced. While exports and business investment should improve modestly, we anticipate this will be more than offset by weaker housing construction, triggered by a pullback in the overbuilt condo market, and more cautious household consumption growth. After growing by 1.7% last year, we expect annual average GDP growth of only 1.5% in 2014.

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