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OTTAWA — Canada will climb out of the recession this quarter, although the path to recovery will be slow and labour markets will sorely lag the upturn in economic growth, says the Conference Board of Canada.
Nevertheless, the think-tank also declared in its quarterly outlook that a long-hoped-for bottom has been reached in the U.S. housing and auto sectors, declines in which severely hurt Canada`s export-dependent economy.
And it predicted the country`s finances will be back in the black by 2013, a more optimistic view than that expressed by both TD Bank and parliamentary budget officer Kevin Page, who have said recently Canada runs the risk of running a permanent deficit.
"I think we have hit bottom. There is good news coming but is going to be a soft recovery and it will take a while before confidence returns, especially on the labour front," said Pedro Antunes, director in charge of the agency`s national and provincial forecast. "The current recession is so widespread that its effects are expected to linger for longer than the typical business cycle."
Still, the Canadian economy will grow by an annualized 0.9 per cent in the third quarter, putting an end to the crushing declines that marked the fourth quarter of 2008 and the first quarter of 2009, the board predicts in it summer outlook. The board`s forecast for the second quarter is a drop of 1.2 per cent.
Read the full article here.
Nevertheless, the think-tank also declared in its quarterly outlook that a long-hoped-for bottom has been reached in the U.S. housing and auto sectors, declines in which severely hurt Canada`s export-dependent economy.
And it predicted the country`s finances will be back in the black by 2013, a more optimistic view than that expressed by both TD Bank and parliamentary budget officer Kevin Page, who have said recently Canada runs the risk of running a permanent deficit.
"I think we have hit bottom. There is good news coming but is going to be a soft recovery and it will take a while before confidence returns, especially on the labour front," said Pedro Antunes, director in charge of the agency`s national and provincial forecast. "The current recession is so widespread that its effects are expected to linger for longer than the typical business cycle."
Still, the Canadian economy will grow by an annualized 0.9 per cent in the third quarter, putting an end to the crushing declines that marked the fourth quarter of 2008 and the first quarter of 2009, the board predicts in it summer outlook. The board`s forecast for the second quarter is a drop of 1.2 per cent.
Read the full article here.