Canadian Economy to Far Outpace Growth of Other G7 Nations, OECD Says

(MSN – The Canadian Press)

A global economic forecasting group says Canadian economic growth will blow away that of other G7 nations by a wide margin during the first half of 2010. The Paris-based Organization for Economic Development and Co-operation is forecasting that Canada’s economy grew 6.2% in the first quarter, well ahead of the 1.9% overall growth for the G7 nations.

The OECD predicts that Canada’s second-quarter growth will be about 4.5%, nearly double the 2.3% growth expected from the combined G7.

The latest outlook comes as Canadian economic data shows the country embarked upon an enthusiastic rebound at the start of the year. In January, Canada’s gross domestic product advanced 0.6%, driven by growth in activity in factories, at construction sites, in mines and in the oilpatch.

However, economists have cautioned that Canada’s economic growth will likely slow down as the Bank of Canada is expected to raise interest rates this July, while consumers could decrease spending to pay off their debts. Read more here.