Canada to see continued economic recovery: Desjardins Group

Economists with the Desjardins Group are predicting continued strong growth for Canada in the years to come, with real GDP growth of three per cent in 2010 and 2.9 per cent in 2011.

Robust domestic demand, rising employment and public investments will help contribute to the nation's economic fortunes, said Francois Dupuis, Desjardins Group vice-president and chief economist, in a release.

Dupuis added that the only drag on growth will be foreign trade as imports will likely rise more quickly than exports. Among the provinces, Ontario and British Columbia are being tagged as Canada's champions for growth, with GDP increases of 3.3 per cent.

In Ontario, growth is expected to be driven by the rebirth of the real estate market, housing construction and automobile sectors.

Global real GDP is also estimated to improve, shifting from a contraction of 1.4 per cent in 2009 to a 3.7 per cent increase in 2010, followed by a 3.8 per cent increase in 2011.

Estimates are more bullish for the United States, which the Desjardins Group says will have a real GDP growth of 2.7 per cent in 2010. This will be followed by 2.4 per cent growth in 2011 following the gradual withdrawal of government recovery measures.