‘Lacklustre’ growth for Canadian economy this year, will pick up in 2014: report

The Canadian economy is expected to grow by just 1.8% this year, but that growth could speed up in 2014 as the situation strengthens south of the border, according to a recent outlook report.

In its spring 2013 outlook report, the Conference Board of Canada says that next year, the Canadian economy is expected to grow by 2.5%, due to a strengthening U.S. economy.

“Overall, Canada’s domestic economy is not expected to muster enough strength to get growth in real gross domestic product above 2% this year,” Pedro Antunes, director for the national and provincial forecasts at the Conference Board noted in a statement.

“Still, the stronger pace of U.S. growth expected in 2014 should help to lift spirits, resource prices, trade prospects and income here at home,” he said.

The 1.8% growth expected for this year isn’t necessarily bad news, the Board says, since we’ve done well since the financial crisis in 2008 and 2009, especially compared to other developed countries.

“The federal government’s tightening of mortgage rules is softening home sales activity and reducing new home construction,” the organization also said. “The slowdown in building should help rebalance the market and mute declines in real estate values.”

In the public sector, much growth isn’t expected until 2016, as the federal and provincial governments focus on reducing their deficits, the Conference Board also noted.