According to the latest outlook from Scotiabank the Canadian stock market and the dollar will rise in 2010 as the economy struggles along the path from recession to recovery.
Chief economist Warren Jestin noted that it clear that we are in a transition period where we see good news on day and bad news the next; he goes to say that this is expected to span over the next few months.
With this trend as we head into 2010 the hope is that the good news becomes progressively better and the bad news gets less and less.
The Canadian economy is expected to show moderate growth in the coming months particularly as interest rates begin to increase and the government starts begin to cut back on stimulus programs.
Scotiabank expects to see the Canadian economy grow to an average annual rate of about 2.5% during the next five year whereas the growth of emerging economies such as Chine will be closer to 7 – 9%.
Jestin also noted that the Canadian economy has changed for the better as sectors such as manufacturing and automaking will recover but claim a smaller portion of the export market.
Scotiabank also says that the Canadian dollar will reach parity with the U.S. dollar by the middle of 2010 closing the year as about $1.03 U.S.
This is a good outlook from Scotiabank; it predicts everything will get better just in time. We will have to wait and see in the next few months how true this prediction really is.
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