The Bank of Canada and International Monetary Fund still expect economic growth in Canada to accelerate through the course of this year. Admittedly, net exports are unlikely to remain a drag on GDP growth, but cautious business investment, further declines in housing activity and slower consumption growth point to overall growth of just over 1% in 2013. Under those circumstances, the amount of excess capacity, which the Bank of Canada already admits is bigger than it previously thought, would only increase further.
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