Economy Forecasts

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By Elli Davis, June 23, 2010

Risk by Ryan Wolf

The Bank of Canada has released its new financial system review! It claims that since December 2009, 3 out of the 5 major economy risks have grown, one remained about the same and one fell. Our financial system is now facing great risk due to global problems.

For instance, there are worries that many countries are taking on more than they can handle and not all of them are recovering successfully. In spite of the fact that Canada is recovering very well, its economic and financial system might well be influenced by countries outside of Canada. Our government, however, stated that the GDP of our country is going to increase by 3.5 percent this year. That is a rise, if compared to its last prediction, of 2.6 percent since March. The research conducted for the government also predicts inflation to come in at 3.2 percent. From the March forecast of 2.8 percent, it is also a quite significant rise.

Overall, Canada is still doing quite well, at the moment, if compared to other countries. Yes, external factor can influence it, but I believe that if we are careful enough, nothing too worrying will occur.