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Canadian economy getting stronger as exports to U.S. zooms
The Canadian economy has got a leap in its development, due to boost in exports from U.S.
Canada economy is taking a leap with the support of increase in U.S. exports. According to the reports in RBC economics, the Canadian economy’s real Gross Domestic Product (GDP), is expected to grow by 3.2 percent in this year and will continue to follow the trend and will grow to 3.1 percent by the next year. It further elaborates that its disposable income will increase by 4.1 per cent, hence prop up customer spending in Canada.
This has been the biggest export period for the Canada since 2008.According to the economist; the scenario is giving bright indications that U.S. economy is also gaining momentum in recovering from depression. Due various deductions in taxes, the American importers have taken keen interest importing and helped the Canada to boost its exports by 10.8 percent. According to the statistics, around 25 percent gain is from the energy sales, followed 9.7 percent from forestry products, 8.2 percent from mechanical tools, approximately agricultural products contributed with 7 percent and Industrial goods by 7 per cent.
It has been found that, Alberta is likely to contribute as one of the top three placing, followed by the growth in Newfoundland and Labrador. Ontario and Manitoba will contribute as expected according to national average while both Quebec and British Columbia is predicted to fall behind. Nova Scotia, New Brunswick and Prince Edward Island may fall as least as expected from them in the year 2011.
This is seen as a good sign by the Canadian economists, as the strong dollar, will help the country businesses to import better capital equipments, hence leading to improvement in productivity and growth. Such a state will contribute to investments in mining, utility and oil and gas extraction industries.
The Bank of Canada is also working restricting campaign, that will lead to rise in interest rates by one or two percent by the end of 2011. The gradual speed of rate increases along with the secured inflation will lead help the Canadian economy to cover up long term interest rates.
According to RBC, the U.S. export trends are expected to flourish in this manner as it is now going. It is further predicting a firm growth in exports while helping Canadian economy to grow by 3.4 per cent by the end of 2011 and around 3.6 percent in 2012.
The Canadian economy has got a leap in its development, due to boost in exports from U.S.
Canada economy is taking a leap with the support of increase in U.S. exports. According to the reports in RBC economics, the Canadian economy’s real Gross Domestic Product (GDP), is expected to grow by 3.2 percent in this year and will continue to follow the trend and will grow to 3.1 percent by the next year. It further elaborates that its disposable income will increase by 4.1 per cent, hence prop up customer spending in Canada.
This has been the biggest export period for the Canada since 2008.According to the economist; the scenario is giving bright indications that U.S. economy is also gaining momentum in recovering from depression. Due various deductions in taxes, the American importers have taken keen interest importing and helped the Canada to boost its exports by 10.8 percent. According to the statistics, around 25 percent gain is from the energy sales, followed 9.7 percent from forestry products, 8.2 percent from mechanical tools, approximately agricultural products contributed with 7 percent and Industrial goods by 7 per cent.
It has been found that, Alberta is likely to contribute as one of the top three placing, followed by the growth in Newfoundland and Labrador. Ontario and Manitoba will contribute as expected according to national average while both Quebec and British Columbia is predicted to fall behind. Nova Scotia, New Brunswick and Prince Edward Island may fall as least as expected from them in the year 2011.
This is seen as a good sign by the Canadian economists, as the strong dollar, will help the country businesses to import better capital equipments, hence leading to improvement in productivity and growth. Such a state will contribute to investments in mining, utility and oil and gas extraction industries.
The Bank of Canada is also working restricting campaign, that will lead to rise in interest rates by one or two percent by the end of 2011. The gradual speed of rate increases along with the secured inflation will lead help the Canadian economy to cover up long term interest rates.
According to RBC, the U.S. export trends are expected to flourish in this manner as it is now going. It is further predicting a firm growth in exports while helping Canadian economy to grow by 3.4 per cent by the end of 2011 and around 3.6 percent in 2012.