BoC surveys imply GDP surge coming: report

by NewsHound on 15/07/09 at 1:31 pm

West block on Parliament Hill in Ottawa.

Surprisingly positive results from two Bank of Canada business surveys would suggest the country is poised for a quarter or two of 10% growth, says a report released Wednesday from Merrill Lynch Canada.

The surveys, unveiled this week, said businesses are the most optimistic about their future sales prospects in almost a decade, and obtaining new loans is becoming less difficult.

Sheryl King, the firm’s chief Canadian economist, said the central bank’s surveys imply that the country is headed for year-over-year growth in the 4.25% range, given there is generally a strong correlation between the survey results and real GDP growth.

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