The Canadian economy grew 2.9 per cent at an annual rate
in the fourth quarter, and 2 per cent for all of 2013. Growth was led by strong
household consumption expenditures and an uptick in exports of goods and
services. However, an accumulation of business inventories also contributed
significantly to growth in the fourth quarter, which may reverse to start 2014.
The Canadian economy grew at a robust average rate of 2.8
per cent in the second half of 2013. Stronger growth, along with the recent
acceleration in inflation and a steep decline in the loonie, will likely quiet
speculation of a Bank of Canada rate cut. We are forecasting that the Canadian
economy will further improve in 2014 growing 2.5 per cent with the Bank of
Canada on the sidelines until 2015.
Copyright BCREA – reprinted with permission
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