Economy Predictions

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By Elli Davis, April 17, 2010

Fortune by Sergei Yahchybekov

According to a survey of 26 economists conducted last week by the Reuters, the Canadian economy is going to grow by 3.3 percent this year. The current predictions are higher than those from January.

The expectation of housing starts also increased compared to the first month of this year. In January their predicted level was only 173,000 units, which has now increased to about 182,000 units for 2010. In 2011, the housing starts ought to stay at 182,000 units. If the expectations come true, the Bank of Canada will not increase its overnight lending rate during the first two quarters of this year. They are forecast to be at 0.75 percent in September and at 1.25 percent by the end of 2010.

The unemployment situation should also be improving. This year, it is predicted to be 8.1 percent then dropping by 0.5 percent in 2011. I'm very pleased to hear this news, the state of unemployment recently has been a concern of mine. Let's see whether these forecasts come true.