Canada Ups 2010 Growth View, Says Budget on Track

(Reuters – Jeffrey Hodgson)

The Canadian government raised its 2010 economic growth outlook on Monday, based on forecasts from private sector economists, bringing its view closer in line to that of the Bank of Canada. The average of 15 forecasts is for real growth in gross domestic product of 3.1 percent in 2010, up from 2.6 percent in the survey taken in December and used as the basis of the federal budget released in March. Growth for 2011 is seen at 3.1 percent, down from 3.2 percent in the December survey.

“Overall, the March survey results suggest that the near-term outlook has improved since the December survey was conducted,” the Department of Finance said. The government has used the average of private sector forecasts as the base for its fiscal planning since 1994, a method that aims to ensure independence in its estimates. Read more here.

Related: Exports Seen Growing 11 Percent in 2010 (Reuters)