The Canadian economy is doing better than expected, reports TD Bank. With this economic development taken into account, TD Economics now expects the Canadian Economy to grow by 3 per cent—half a percent higher than the previous estimate.
The Canadian economy has entered the New Year on a stronger foothold than envisioned. This upward revision on economic growth reflects an improved U.S. outlook and an increased appetite for Canadian commodities, such as automobiles and industrial goods. This solid momentum is expected to carry forward through the first half of the year.
This upward estimate projects a favourable spending climate for consumers. Improving employment opportunities and household prosperity are likely to support more consumer spending. With continued drive on the employment front, household savings will likely improve.
This growth can also potentially lead to an increase in business investment. TD Bank speculates that non-residential construction will be supported by declining office vacancy rates and resource expansions. Machinery and equipment business investment will also remain fruitful through 2011 and 2012. Additionally, the Canadian dollar’s rise in the financial market will make business and construction opportunities more available. With all these opportune situations, corporate profits are expected to rise at a steady pace.
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Although this economic forecast sounds advantageous, there are still risks that could materialize over the next few years to negatively impact this predicted economic upturn. Issues such as house value, global inflation, and spreading unrest in the Middle East are just a few situations that could still unpredictably change the global economic market.
The Canadian economy has entered the New Year on a stronger foothold than envisioned. This upward revision on economic growth reflects an improved U.S. outlook and an increased appetite for Canadian commodities, such as automobiles and industrial goods. This solid momentum is expected to carry forward through the first half of the year.
This upward estimate projects a favourable spending climate for consumers. Improving employment opportunities and household prosperity are likely to support more consumer spending. With continued drive on the employment front, household savings will likely improve.
This growth can also potentially lead to an increase in business investment. TD Bank speculates that non-residential construction will be supported by declining office vacancy rates and resource expansions. Machinery and equipment business investment will also remain fruitful through 2011 and 2012. Additionally, the Canadian dollar’s rise in the financial market will make business and construction opportunities more available. With all these opportune situations, corporate profits are expected to rise at a steady pace.
SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:
- Economy Shows Signs of Pre-Crisis Optimism among CAs
- George Weston Limited to Inject $1 Billion into Economy
- BoC Warns Greek Crisis Could Endanger Canadian Economy
Although this economic forecast sounds advantageous, there are still risks that could materialize over the next few years to negatively impact this predicted economic upturn. Issues such as house value, global inflation, and spreading unrest in the Middle East are just a few situations that could still unpredictably change the global economic market.
