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Global Macro-Market Outlook

Canada: Q3 2010 Outlook

Real GDP (% change y/y)
2010 2011
3.2 2.5
 
CPI (% change y/y)
2010 2011
2.1 1.9

  • Domestic demand, the main driver of Canadian growth in 2010 and 2011, will have its wings clipped by the global slowdown in H2.
  • A strong loonie and restrained U.S. consumer spending are risks to exports.
  • Interest rate normalization will be gradual.

Outlook Update: Still Top of the G7

RGE has marginally revised up its projections for Canadian growth to 3.2% in 2010, reflecting in part a stronger Q1 result and the strength of labor market indicators in Q2. In[...]

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