I believe the Canadian Economy will continue to grow steadily over the next year, even
with a new government now in place. The main two factors being the housing and
resource market. True, the housing market will probably not continue to grow as it has
over the past 2-3 years where most home-owners have realized massive gains. The
Bank of Canada has already said they will be most likely raising rates slightly in order to
keep inflation down. Historically, this causes the housing market to cool as the demand
for leveraged money falls. This being said, it is projected the housing market will grow
another 10% for 2006. This, in turn, creates wide-spread consumer spending on
everything from building labor to furniture for your new place.
The resource market should continue to expand as it shows little to no signs of slowing
and many corporations continue to pour money into them, especially Alberta.
Romania, Germany, Canada, Hungary
Canada
English: Welcome to Fort McMurray sign in Fort McM...The only
downside thus far is that it may be expanding too rapidly and places like Fort McMurray
have grown too quickly and consumer demand has got so high so fast that the population
is having a hard time catching up.
Outside of these two markets, financial corporations and technology have continued to
grow nicely and have helped pull the overall economy along.
A major downside in the economy as we sit now is our dollar, this is simply because
exports go down as our dollar gains strength, and with Canada (especially BC) being a
huge export country, this has a negative effect.
Overall, I would say we can expect a steady growth this year (David Dodge, Bank of
Canada Governor, projected it to be 3.1% just yesterday).
Real Estate
AP_NEW_HOME_SALES
Recent home sales, by the numbers