Royal Bank Sees Canadian Economy Easing
Canadian gross domestic product should grow at a real rate of 3.3 pct this year before easing to a 3.0 pct growth rate next year when U.S. economic growth is expected to decline, Royal Bank of Canada, Canada’s largest bank, said in its monthly economic forecast.
The forecast is from fourth quarter to fourth quarter. The bank did not give Canada’s real rate of growth for 1986. The bank said it expects the Canadian dollar to remain at the 75 U.S. ct level for the next few months as major economic fundamentals have not improved enough to return the currency to a higher level in the absence of a wider interest rate spread.