Economy shows strongest growth rate in six quarters
The Canadian economy bounced back in the fourth quarter of 2003 with the strongest growth rate in six quarters. Growth came in at 3.8% and was 1.7% for the year as a whole. The economy is expected to nearly double last year’s performance with a target of 3.2% in 2004 and 3.6% in 2005.
The Canadian economy performs well when world growth, international trade flows and commodity prices are all on the rise. The restructuring that resulted from free trade, price stability and balanced fiscal budget initiatives have resulted in a more nimble economy, one that can quickly bounce back from adversity and, just as quickly, capitalize on new opportunities.
In light of the Canadian dollar’s appreciation, the rise in profits and business investment last year attests to this new-found resilience. While the Bank of Canada did cut rates in April, it will likely remain on the sidelines for the remainder of 2004 which will put the Canadian dollar back on course towards the 80 U.S.-cent mark by year end.
Bank Rate
Canadian Interest and Exchange Rate Forecast
These figures are based on the calendar year.
The actual rates are based on Bank of Canada rates.
The forecasts are from RBC Royal Bank®.
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