Canadian Economy has "Peaked"

The Canadian economy has continued to remain strong despite the financial crisis we had. However there are some factors which now come into play which will affect the economy.

Economists predict that the strong increase of exports and business investment which is driving the growth will be limited by several factors.

• A high Canadian dollar


• The sluggish U.S. economy


• Huge household debt levels - record levels


• Government stimulus spending slowing down

As the economy reaches the midpoint of 2011, there is expected to be a slow down. The Real Estate market which has surged while in the U.S. has had a double dip, will show signs of weakness.

New Listings are expected to increase with sales expected to decrease, which will create a moderating effect on house prices by about 10% from the current levels. This is predicted to take place in the 1st quarter of 2012 through the year and stabilize in 2013.

TD projects growth to be a modest 2 - 2.5% and jobless rate to remain over 7% for the next few years.