The Canadian economy remains in overdrive, combining stellar job-creation numbers with healthy growth in gross domestic product (GDP) forecast for both 2002 and 2003, according to the Conference Board of Canada's Canadian Outlook - Fall 2002.
"The economy is defying the pervading sense of uncertainty and gloom," says Peter Hall, associate director, national forecast, for the Conference Board. "And the phenomenal employment growth that has accompanied the recent expansion is the clearest signal of the economy's staying power."
The manufacturing and construction sectors have been especially strong this year. Job growth overall has been vigorous, with 385,000 positions added so far this year, the majority being full-time, private-sector jobs. GDP is forecast to grow by 3.5 per cent in 2002, and 3.4 per cent in 2003.
The strong pace of growth raises the threat of increases in inflation, the Conference Board reports. As the economy reaches full capacity in mid-2003, a general price increase could ensue if growth is not held to a sustainable pace.
