The latest survey of private sector forecasters, included in the recent Federal Budget, shows that they remain overly optimistic about the prospects for economic growth in 2013 and beyond. Ignoring the fragile global backdrop, discounted Canadian oil prices and the dangers of a severe housing slowdown, the forecast that GDP growth will accelerate from 1.6% this year to 2.5% in 2014 would seem to hinge on a sizeable rebound in business investment, supported by somewhat higher commodity prices. We think Canada's economy is actually at a crossroads and that, rather than growth accelerating, it will remain weak well into next year.
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