Canada

Current Economic Outlook

The weakness in Canada’s manufacturing sector, a reduction in commodity exports, and exposure to the U.S. for trade and investment leads RGE to estimate that Canadian output will contract 2.5% y/y in 2009, before rising by almost 2% in 2010. This forecast, slightly better than RGE’s July estimates, assumes that the Canadian economy bottomed in 2009 and reflects RGE’s revised outlook for the U.S. economy, the resilience of the Canadian consumer and the revival in commodity demand. Canada’s recession was sharp but of relatively short duration compared to some past recessions. After sluggish growth for most of 2008, Canada slumped into recession at the end of the year, experiencing GDP contractions of 3.7% in Q4 2008, 5.4% in Q1 2009, 3.4% in Q2 (all q/q annualized).

Read the Latest RGE Global Economic Update.