Saturday, April 26, 2008

Economy stalling: Carney

OTTAWA–Acknowledging that the economic storm sweeping North America is worse than expected, the Bank of Canada said yesterday that the Canadian economy is sagging and won't recover fully until 2010.

With weak export sales as the main culprit, Canadian economic growth will drop to a very weak 0.3 per cent in the April-through-June period, significantly lower than the 2 per cent forecast by the central bank only three months ago.

But that's better than the outlook in the United States, which Bank of Canada governor Mark Carney indicated is now experiencing a recession marked by marginally declining economic growth in the first six months of this year.

"Growth in the global economy has weakened" since January, Carney remarked at a news conference to release the bank's latest Monetary Policy Report.

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