We had a wonderful turnout at this morning’s Breakfast
Seminar “An Economic Outlook for 2012” put on by ourselves and RBC Royal Bank.
Ms. Dawn Desjardins, Assistant Chief Economist of RBC Royal
Bank, flew in from Toronto to speak at the event. She had much to say about the
global economy, but also focused in on what is affecting our nation.
According to Ms. Desjardins there has been modest growth in
the U.S. economy. The growth in the employment sector has also shown
appreciation, however, at a slow and gradual pace.
Interest rates have remained low, and although they are
expected to rise it will not be significant, said Ms. Desjardins.
She also noted that the debt-to-income ratio in Canada is
now at 150%, which raised the question “Will we as Canadians be able to service
it, especially if interest rates start to rise?” The housing affordability was
a topic up for discussion and Ms. Desjardins demonstrated graphically that for
Ontario the housing costs-to-income ratio currently sits at around 42%.
Canadian exports to the U.S. are more or less stable
according to Ms. Desjardins as just over 50% are commodity based.
Ms. Desjardins said that, although it will take a few years,
the budget is expected to be balanced.
In general, Canada’s economy is expected to grow, but at a
slow pace in 2012.
Where do you see Canada’s economy going in 2012?
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