Confidence is growing that the Canadian economy is rebounding from a weather-related winter hiccup and is poised to take advantage of stronger U.S. demand, reports the Canadian Press.
International forecasting house IHS Economics became the latest to offer a relatively positive spin on Canadian prospects as it predicted growth picking up for the next three years.
The firm says growth will average 2.3 per cent this year, 2.5 per cent next year and 2.7 per cent in 2016, with unemployment rates dropping to 6.5 per cent by the third year. The 2016 projection is half-a-point stronger than the Bank of Canada's more modest call.
But IHS chief economist Arlene Kish is confident the U.S. economy is ready for a major rebound from the first quarter's weather-induced mini-slump and that will translate into stronger activity in Canada.
Kish said while Alberta will continue to be the major driver of Canadian growth, she also has Ontario — the country's manufacturing heartland — staging a comeback from two sub-par years.
Canada's most populous province is projected to grow by 2.4 per cent this year rising to 2.7 per cent in 2016, essentially matching the national average.
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