Economic data

The Canadian economy has been churning out respectable growth numbers. For 2005, gross domestic product (GDP) came in at 2.9 percent. That is just slightly below the Bank of Canada’s 3.0 percent capacity target.

“The Canadian economy has been in very good shape the past couple of years,” says Ideaglobal’s Powell. “It’s on track and right where they want it to be.”

Charmaine Buskas, economist at Moody’s Economy.com, agrees economic fundamentals are still very strong in Canada. Looking ahead to this year, Buskas has forecast a 3.2 percent GDP rate for Canada, while Ideaglobal expects a 3.1-percent reading.

Inflation data has been extremely well behaved in Canada, with the latest February Consumer Price Index core rate at 1.7 percent, below the BOC’s 2.0-percent target.

Finally, in stark contrast to its neighbor to the south, Canada currently boasts a “twin surplus,” in both its fiscal and current account readings. In 2005, Canada chalked up a $30.2 billion (Canadian) surplus, vs. the U.S. 2005 $804.9 billion current account deficit.