A look at the data

Lynch believes the fundamental backdrop is relatively positive for Canada because it runs a trade surplus and has the best fiscal position within the G-7.

In 2004 Canada’s gross domestic product (GDP) performance came in at 2.8 percent, vs. expectations for 2.7 percent this year. Into 2006, however, Mazanec says the Canadian economy may grow upwards of 3.0-3.5 percent.

Economy.com’s Buskas estimates third quarter GDP at 3.2 percent and fourth quarter at 3.1 percent.

On the inflation front, consumer prices shot up 2 percent year-over-year in August, while core prices gained 1.7 percent.