Canada saw 2.5% growth in Q1

OTTAWA— Canada’s economy will grow 2.5 per cent in the first three months of this year, well above the 1.8 per cent level the Bank of Canada says expected three months ago.

The Bank projects the economy will grow by 2.4 per cent in both 2012 and 2013 before moderating to 2.2 per cent in 2014.

But the potential of a nasty debt crisis still looming over Europe and heavy borrowing at home makes our economy vulnerable to a house price correction.

And although March saw 82,300 jobs created, the bank says employment gains over the last six months have been modest.

Read the Bank of Canada’s April 2012 Monetary Policy Report