Barrie McKenna, The Globe and Mail - September 10, 2010
Royal Bank of Canada has downgraded its forecast for the Canadian economy this year and next, blaming concerns about the United States and "nervousness" about the global economy.
Canadian gross domestic product will grow 3.3 percent this year and 3.2 percent next year, according to RBC. That’s down from the 3.6 percent and 3.5-percent growth rates it had expected just three months ago.
Nonetheless, RBC chief economist Craig Wright said the recovery remains firmly on track. GDP has returned to pre-recession levels and 94 percent of the jobs lost have been replaced, he said.
The bank also cut its forecast for the U.S. economy to 2.7 percent this year and 3 percent in 2011. That’s down from estimates of 3.1 percent and 3.4 percent respectively.