Update from the CSCB for 31 July 2007

July 31, 2007

 

GDP data expected to show Canadian economy on a roll

 

This article is excerpted from the 31 July 2007 edition of “globeandmail.com”.

 

The release today of the gross domestic product data for May is expected to confirm that the sluggish growth of the Canadian economy during the second half of last year is past, despite the lofty dollar.

 

Rapidly rising house prices and torrid retail sales are expected to boost the gross domestic product growth during May to 0.4 per cent, compared with April when there was no growth, according to a survey of economists by Bloomberg.

 

"It's clear that Canadian interest rates are simply too low to contain household spending pressures," said Michael Gregory, a senior economist with BMO Nesbitt Burns Inc. in a report to clients. "We now look for a September rate hike, come hell or the high loonie."…

 

If the May forecasts prove to be accurate, the economy is on track to post an annualized gain of 3 per cent, according to BMO Nesbitt Burns….

 

Meanwhile, south of the border there are expectations the U.S. Federal Reserve Board will lower the federal funds rate as signall


Topic(s): 
Canadian Economy & Politics
Information Source: 
Canadian News Channel
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