Question

10. Global Insight (GI) forecasting firm predicted that the Canadian economy will bounce back by a stronger than expected 1.0% on annualized basis in the third quarter of 2012 and with a further 0.1% in the fourth quarter of 2012. The firm also expects moderate growth overall in 2013. (10 marks)

a. What evidence does GI present to support the view that Canada had entered a recovery

Answer 1

Canadian economy and arrive at a time when two other growth drivers may be flagging: 1) residential construction in response to new, tougher mortgage qualification rules; and 2) capital spending on oil sands development as U.S. domestic oil production ramps up