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The Canadian economy outpaced its potential in the second quarter of 2017 and is on course for GDP growth of 3.1% for the full year according to RBC Economics.

The momentum is being driven by consumer spending, business investment and government spending.

“Canada’s economy continues to hit it out of the park,” said Craig Wright, senior vice-president and chief economist at RBC. “For the fourth consecutive quarter, we’ve seen above-potential growth, and despite the cooling of the housing market and uncertainly around NAFTA, we expect the momentum to carry through to the end of the year.”

The bank is expecting 2.2% GDP growth in 2018.

The RBC Economic Outlook sees a rebound for Alberta to lead provincial growth with GDP up 4.2%. Quebec will gain 2.8%, its strongest rate for 15 years.

 

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RBC says economy will grow despite cooling housing market

The Canadian economy outpaced its potential in the second quarter of 2017 and is on course for GDP growth of 3.1% for the full year according to RBC Economics. The momentum is being driven by consumer spending, business investment and government spending. “Canada’s economy continues to hit it out of the park,” ...

Continue Reading