Conference Board cuts Canadian outlook for 2009
05.11.2008 13:01
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- Source: cbc.ca
The battering that global financial markets have taken in recent weeks has prompted one research group to cut its outlook for the Canadian economy for 2009. The Conference Board of Canada on Monday cut its growth forecast to just 1.5 per cent for next year. That is down from the 2.2 per cent growth prediction that the think-tank offered on Oct. 15. The Conference Board issued the downgrade, saying a "recession-plagued" U.S. economy will take its toll north of the border. Despite offering up a weaker forecast, the Conference Board is still confident that the Canadian economy will avoid tipping into recession. "High resource prices have bolstered Canadians' real income for six years, including 2008. In 2009, this source of strength will evaporate," said Pedro Antunes, the director of the Conference Board's national and provincial economic forecast. "Still, Canada is expected to skirt a recession in 2009. Although the economy in general is slowing, it is still growing." The Conference Board forecast real GDP growth in the United States to be just 0.5 per cent in 2009. That is down sharply from the 1.7 per cent real growth it predicted almost three weeks ago. The group sees real U.S. household spending contracting for five consecutive quarters until late 2009 because of low consumer confidence, coupled with significant losses in wealth following the drop in home prices and stock values. RelatedInternal LinksCanada's growth to slump, but no recession: conference boardIN DEPTH: The Bottom Line: Complete economic coverage from CBC News Consumer HeadlinesChina detains factory owner in melamine scandalAuthorities in a Chinese city have detained the owner of a feed processing factory suspected of selling chicken feed tainted with an industrial chemical that was later found in eggs, state media reported.Dunn's smoked meat recalled in B.C.Canada's food watchdog on Tuesday announced a recall in B.C. of Dunn's Famous brand smoked meat because it may be tainted with Staphylococcus toxin.Review board OK's power rate hike for Nova ScotiaNova Scotian electricity customers will see their rates increase by an average of just over nine per cent in January.Air Canada fee for extra storm service 'reasonable,' transportation agency rulesThe Canadian Transportation Agency has rejected a challenge to a controversial Air Canada program, which provides enhanced customer service to stranded travellers who have paid an advance fee.Charitable donations up, number of donors slips: StatsCanCanadians made $8.6 billion worth of charitable donations in 2007, an increase of 1.4 per cent over the previous year, according to Statistics Canada figures released Tuesday. Consumer Life FeaturesECONOMYGeographyWorld's next great cities CONSUMERAuto salesHow to avoid car buyers' remorseSAFETYRecalls and AdvisoriesBLOGFood BytesTightening the belt before dinnerMOBILE TECHNOLOGYNotebook computersCheap versus chic laptopsCOMM-ODDITIESAuctionOzark cave owner turns to eBay in search of a bidderPeople who read this also read …
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