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OTTAWA -- Canada`s economic recovery is likely to be far stronger than markets anticipate, a Bay Street economist forecast Wednesday, indicating that a "burst" of 10% growth is possible in the coming quarters.
The prediction from Sheryl King, chief economist and strategist at Merrill Lynch Canada, comes amid fierce debate over what shape the recovery will take following the deepest recession since the Second World War.
"Markets think we are going to get this gradual rise in growth, and then everything is going to be fine," Ms. King said in an interview. "But business cycles never end like that. You usually get some pop in growth."
Those who argue that a strong rebound, rather than a slow, weak recovery, is in the offing were handed a key piece of evidence Wednesday when major U.S. credit-card providers, led by American Express Co., reported defaults and delinquencies were less than expected in June. This may signal that U.S. consumers` credit positions -- up until now, the missing piece in the U.S. recovery puzzle -- are not deteriorating as rapidly as feared, despite rising unemployment and the continuing housing slump.
Read the full article here.
The prediction from Sheryl King, chief economist and strategist at Merrill Lynch Canada, comes amid fierce debate over what shape the recovery will take following the deepest recession since the Second World War.
"Markets think we are going to get this gradual rise in growth, and then everything is going to be fine," Ms. King said in an interview. "But business cycles never end like that. You usually get some pop in growth."
Those who argue that a strong rebound, rather than a slow, weak recovery, is in the offing were handed a key piece of evidence Wednesday when major U.S. credit-card providers, led by American Express Co., reported defaults and delinquencies were less than expected in June. This may signal that U.S. consumers` credit positions -- up until now, the missing piece in the U.S. recovery puzzle -- are not deteriorating as rapidly as feared, despite rising unemployment and the continuing housing slump.
Read the full article here.