OTTAWA, April 16 /CNW Telbec/ - Buoyed by the strongest four-month run of
new jobs since 2002, the Canadian economy is expected to post growth of
2.8 per cent this year, according to the Conference Board's Canadian Outlook -
"A whopping 210,000 jobs have been created since November," said Pedro
Antunes, Director, National and Provincial Forecast. "Although consumers will
not receive much in the way of new tax cuts compared to 2006, they will
continue to have money in their pockets from new employment and strong wage
As labour markets across the country will remain tight, employment growth
at this pace is unsustainable for the year as a whole. With wage gains
continuing to outpace inflation, another year of robust domestic demand is
Provincial coffers will benefit significantly from the strong economic
growth and recently-announced federal budget measures, which are to transfer
$39 billion to provinces and territories over the next seven years.
"Last year, most of the fiscal dividend from stronger-than-expected
federal government revenues went to the people. This year, the dividend is
going to the provinces," said Antunes.
In addition to ongoing strength in consumer demand, an improving U.S.
economic outlook and a stable Canadian dollar will allow the trade sector to
contribute modestly to overall growth for the first time since 2001. In 2008,
the Canadian economy should accelerate to growth of 3.4 per cent.
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