RBC predicts recession will end next quarter
by investor on 16/06/09 at 1:17 pm
Royal Bank of Canada has become the first of the country’s major banks to officially predict the recession will end in the third quarter as fiscal and monetary stimuli begin to heal the economy.
With housing resales up, manufacturing declines slowing and the third quarter just two weeks away, Canada can look forward to better times ahead, the bank said.
But despite the return to growth, Paul Ferley, the assistant chief economist at RBC Capital Markets, said it would take until next year for the recovery to gain full momentum and for consumers to cast aside their caution.
RBC said Monday the Canadian economy would emerge from three quarters of decline with a mild, but nevertheless positive, annualized growth rate of 0.8% in the third quarter followed by 2.4% in the fourth quarter. At the same time, it predicts the United States to end its four quarters of malaise with growth of 0.5% and 2.6%, respectively.
Recent Comments