Bank of Canada May Be Right in Forecast

Bank of Canada Governor, Mark Carney, projected a difficult 2009 but surprised many in the media with his forecast of 4% growth in 2010.

With the media focusing on job losses and corporate profits falling. you wouldn’t think that their is any light at the end of the tunnel. Interest rates, however, are close to zero.

The economic stimulus packages that are being put forward around the world will have some positive impact but it does take some time to work through the system.

Demand for housing in the US showed its first increase in many many months but the signs are there that all of the monetary and fiscal policies put forward will kick into gear at the same time allowing for some pretty impressive growth next year.

What are your thoughts? Do you think the Bank of Canada is off base or do they have a case for economic growth in 2010?

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2 Responses

  1. I really hope they are right. But it will take some doing to make it happen.

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