Canadian Economy in 2010

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March 30, 2010

Economy is predicted to worsen by France Gipsy

‘It is time for Canadians to reset their housing market expectations’, According to a new report by the Scotia Capital claims, we should be prepared for a calmer, more subdued housing activity in the next decade.

The first reason stated in the article is the fact that this decade was started with relatively high home prices and higher than usual level of unsold new housing stock, which quite differs from the beginning of the third millennium. The second argument is that the basic factors driving housing demands will likely be less supportive during 2010.

Not only housing, but economy in general is predicted to worsen. The article predicts slower growth trajectory for global economy (including that of Canada) through the middle of this decade. The medium-term growth trend in our country is also expected to slow down, if compared to the period of 2000-2007. It ought to be at the level of about 2.5 percent, a half percentage lower than in the 2000s (at least before the crisis).

Not many seem to be too optimistic about the housing and generally economic situation in 2010. Yes, it will probably be worse than it is now or than in was before the recession. However, we should not necessarily expect a tragedy.