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Conference Board revises Canadian economic outlook downward

Nov. 3, 2008 Ottawa - In response to the turmoil in global financial markets, and the impact on oil prices and exchange rates, The Conference Board of Canada has updated its previously-released Canadian Outlook - Autumn 2008.


November 3, 2008
By Carey Fredericks

Nov. 3, 2008 Ottawa – In response to the turmoil in global financial markets, and the impact on oil prices and exchange rates, The Conference Board of Canada has updated its previously-released Canadian Outlook – Autumn 2008. The revised forecast calls for Canada's economy to grow by just 1.5 per cent in 2009 (compared to 2.2 per cent), as a recession-plagued U.S. economy takes its toll north of the border.
       
"High resource prices have bolstered Canadians' real income for six years, including 2008. In 2009, this source of strength will evaporate," said Pedro Antunes, Director, National and Provincial 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 forecasts real GDP growth in the United States to be just 0.5 per cent in 2009. Due to the effect of low consumer confidence, combined with significant losses in wealth following the drop in home prices and stock values, real U.S. household spending will contract for five consecutive quarters, until late 2009.


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