Analysts with the Royal Bank of Canada (RBC) predict that the Canadian economy will accelerate at a slightly faster rate in 2011 once the present slow down passes. Growth slowed in the third quarter of this year, largely due to softness in the housing market and U.S. economy, the report found.
“The mid-year economic slowdown reflected a pullback in housing investment, which fell after five consecutive quarterly increases, and a mild downturn in exports,” said Craig Wright, senior vice-president and chief economist at RBC.
“However, financial conditions remain supportive of domestic growth which will be the main engine of the expansion going forward.”
Source: The Canadian Press