Moderate economic growth predicted by Royal Bank of Canada
June 19, 2013
The past few years have seen Canada bear the brunt of economic difficulties similar to those experienced in the late-2000s recession of the United States, albeit somewhat less severely. These issues have affected various industrial sectors of the nation, ranging from manufacturing and utilities to forestry and produce exports. However, the Royal Bank of Canada recently released projections that are cautiously optimistic about the economic future of various provinces, as well as the nation overall. Businesspeople in Canada may well appreciate these predictions, and discuss them with foreign business partners using an international calling card.
CTV News reported that RBC Economics projects the nation's economy to grow by 1.9 percent in 2013, a small but notable increase from its estimate of 1.8 percent released in March. The bank's expectation for 2014 economic growth stood at 2.9 percent, and while this is unchanged from the March report, it is nonetheless indicative of a positive direction for the country. Craig Wright, the RBC's chief economist, noted specific reasons for the expected growth in a recent statement.
"The improving trade balance underpins our forecast for Canada's economy to grow at rates which should help propel the economy to full capacity in early 2015," Wright said, according to the news source. "Stronger demand for autos, houses and industrial machinery from the U.S. will help sustain the lift in export growth that Canada experienced so far this year for the remainder of 2013."
In terms of specific provinces, Newfoundland and Labrador currently stands ahead of all others in Canada, based largely on the province's oil and gas production industry. This will lead the economy to grow by 6 percent - a stark contrast to 2012's 4.5 percent decline.
Meanwhile, Alberta's economy is also predicted to grow notably, by 3.0 percent, as is Ontario's, with a 2013 growth projection of 1.7 percent. By contrast, British Columbia is only expected to grow by 1.6 percent - an unexpected decline from 2012's 1.8 percent.