Survey Shows Canadians Pessimistic about 2007
While Americans are continually optimistic towards the year ahead (2007 being no exception), a recent survey shows Canadians are pessimistic about the year head.
It guess it shows what happens when a country so reliant upon the US and the US economy is currently a little unstable.
The share of Canadians who believe the economy is expanding fell to 61 percent in December 2006 from 77 percent in the same month the previous year, a Pollara Inc. poll released today showed. The Bank of Canada already cut its forecast for 2007 twice last year, finally lowering it to 2.5 percent in October.
Chief economists for Canada’s largest banks say the central bank’s 2007 growth forecast is too high because of a slowdown in the U.S., which buys about 80 percent of Canadian exports. Some predict a further lowering of growth targets and a third-quarter interest rate cut by the central bank.
“What is driving this economic pessimism? Events south of our border,” Pollara Chairman Michael Marzolini said today in a presentation at the Economic Club of Toronto, where five major bank economists also were speaking on the outlook for growth. He said Canadians expect the U.S. economy to slowdown in 2007 and the survey is the first to show a “clear sense of foreboding.”
