Canada Drives Towards 3% Growth Rate

Canada is heading for annual economic growth of more than 3% for the next two years, a higher rate than in most industrialized countries, the Organization for Economic Development (OECD) said on Nov. 29. Growth was being helped by exports and high prices for commodities including oil which Canada exports.

In its twice-yearly report on the global economy, OECD said that the Canadian economy would expand to 3.2% in 2006 and 3.1% in 2007.

"Activity is expected to grow at a solid pace in the next two years as exports benefit from strengthening external demand," the OECD said, adding that Canada stood to benefit from a "buoyant macroeconomic outlook".

The OECD said that "most fundamentals have remained healthy" in 2005, borne out by a rise in corporate profits, robust consumer spending, higher capacity utilization and increased investment.

Overall growth in the 30 industrialized OECD economies is predicted to be 2.7% this year and 2.9% in 2006 and 2007.

Copyright Agence France-Presse, 2005

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