Thursday, March 18, 2010

An economic hatrick for Canada

That's columnist Jay Bryan of the Gazette is calling it. So it seems HM Minister of Finance was probably overly prudent on growth expectations. That is a good thing . No wonder the opposition doesn't want to debate economic issues in the house. They want to discuss false scandals and non issues. This is great economic news.

Canada produces a rare economic hat trick

"Robustness of our recovery continues to depend on that of our biggest trading partner."


Canada's economy pulled off a rare hat trick this week, with stunningly strong performances in not one or two, but three different measures of this country's economic recovery. Can it continue?

Quite likely it can, if your definition is that our economy keep outperforming those of most other industrial nations. The current torrid pace of growth, though, is likely to taper off somewhat.

The latest sign that forecasters have underestimated the vigour of Canada's rebound came yesterday, when we learned wholesale sales zoomed ahead in January by three per cent, or six times as fast as economists' consensus prediction. That was the strongest monthly gain since late 2006.

This just strengthened the credibility of two other important, consensus-beating reports Tuesday. One showed an unexpected surge of strength in manufacturing sales - about four times what was expected, noted Derek Holt of Scotia Capital Markets.

Both the manufacturing and wholesale reports marked an acceleration in already-encouraging uptrends that began around the middle of last year, and spurred BMO Capital Markets analyst Benjamin Reitzes to suggest the rate of economic growth in this quarter could end up as as high as four per cent, much faster than a recent Bank of Canada forecast of 3.5 per cent.

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