OTTAWA—The Conference Board of Canada says exports will lead the charge to economic growth in the near-term after sub-par growth in 2012 and 2013.
According to the think-tank’s Canadian Outlook-Autumn 2013, the national economy is projected to grow by close to 2.5 per cent in each of the next two years on the back of increased exports.
After weak growth in real GDP this year—the Conference Board expects an increase of 1.8 per cent in 2013—exports are expected to buoy growth in 2014 and 2015.
The export sector started strongly in 2013, but weakened as the year went on—overall growth in exports is expected to come in at just 1.4 per cent this year.
Total exports are forecast to grow by 3.7 per cent next year and four per cent in 2015, mainly due to an improved outlook in the United States.
In addition, the domestic economy should keep humming along in 2014 and 2015 thanks to low interest rates and improving business and consumer confidence.
Europe’s performance and the global economy still pose a threat to economic growth over the coming years, the think-tank warns.