TD Canada Trust has published its Quarterly Forecast for the Canadian Economy. Below are the highlights of the report
• Uneven external demand weighed on Canada’s economic growth in Q2, even as domestic consumers and the housing market displayed better-than-expected momentum. The Canadian economy is forecast to grow at a modest 1.7% pace this year, before picking up to 2.4% next year and to 2.6% in 2015.
• Housing and consumer spending are expected to make a larger contribution to overall growth than previously expected. Elevated household indebtedness and higher interest rates should still lead these areas to slow next year.
• A downgrade to both our U.S. and global economic outlook over the near term will likely translate into weaker export gains, and business investment prospects have been lowered in turn. The transition to more export-led growth is still forecast, only delayed until next year.