Economic Growth Hopeful

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    Canada’s economic growth was subdued in the first quarter of 2012, but is expected to gain ground going forward, says the ‘RBC Economic Outlook’ Looking ahead, strong gains in employment, brisk housing market activity, firm business investment flows, and a pick-up in exports will increase the pace of expansion. RBC forecasts real GDP growth of 2.6 per cent in 2012. “We expect that gains in consumer spending will be complemented by stronger business investment flows. Exports should also pick up as U.S. demand recovers,” says Craig Wright, senior vice-president and chief economist. “On balance, conditions for growth are positive, supported by a continuation of a low interest rate environment and a Canadian financial sector that is healthy and ready to provide credit.”