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If you live in Europe, there is a tendency to doom and gloom when you are talking about economics. However slowly but surely the expectations are beginning to rise, the word upgrade is starting to be used more often in the IMF assessment reports.
The latest economy to be revised upwards is that of the Canadian economy, with a small increase in the growth expectations for this year and next. Canada was never quite as affected by the global financial problems having to some extent ‘put it’s house in order’ some years ago. The growth rate is only expected to be around 2-2.5% but this comes on the back of consistent if unspectacular growth over the last few years.
The IMF continue to emphasize the global situation which is dragging back many economies including Canada. Growth around the world is expected to be around 3%, although this should rise significantly over the next few years.
Countries like Canada have based their economies on slow, consistent growth and limiting public expenditure and debt. The lessons of European and the US appear to have strengthened this resolve. Although Canada has not suffered any significant GDP falls, there is an air of austerity to the policy making. If you watch regularly the Canadian finance and news shows you will see this being reflected in day to day life. Here’s how I watch the Canadian broadcaster by the way – http://www.proxyusa.com/how-to-watch-canadian-tv-from-the-us , although I haven’t figured out how to watch on more TV yet. If you prefer a video explanation that can bring Canada into your living room – here’s another method – right here.
The IMF of course are not always correct in their growth figures. The Bank of Canada has a much more optimistic expectation for 2014, of nearly three percent in 2014. We will have to see who comes out closest in next years economic data.