Canada – leader of G8 in economic growth

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By Elli Davis, December 15, 2009

Happy Canada Day! picture by Ian Muttoo

Among the states of G8, Canada is going to be the leader in economic growth in 2010. That is according to the reports released yesterday, 14th December. Merril Lynch Canada and Royal Bank of Canada predict 2.6% and 3.2% growth next year, which would be higher than the growth of 7 fellow countries in G8.

Both expect that the currently very low interest rates (the level of the key lending rate in the Bank of Canada is 0.25 percent at the moment) will increase by minimally one percentage point by the end of 2010. The stimulus of the government, i.e spending billions of dollars to achieve such cheap rates will hit its highest point next year. Consequently, according to the bank, better credit conditions to increase growth in 2010 and 2011 will be created.

"Expect 2010 to be the year of consumer takeover." says the Merril Lynch report. We will know whether this claim is right very soon - 2010 is almost here!