Standard & Poor’s said Canada’s economy will expand at a “subdued” pace of 2.1 percent in 2012 and 1.9 percent in 2013 as a weaker global economy will sap demand for Canadian exports and stifle growth.
“The fragile position of the global recovery, impairment in international trade, and the high value of the Canadian dollar will continue to dampen business for Canadian exporters,” the New York-based ratings firm said in a report.
A stuttering recovery in the U.S. and recession in Europe, Canada’s two main markets responsible for more than 80 percent of export demand, will weigh on hiring and limit income growth, S&P said.
“We don’t expect Europe to emerge from recession until later in 2013, while for the U.S. we see subpar growth of about 2 percent continuing through the end of 2013,” according to the report by S&P analyst Robert Palombi.
Canada’s economy will grow by 2.1 percent in 2013, according to Bloomberg economist forecasts. Gross domestic product expanded at a 1.9 percent annualized pace between April and June, Statistics Canada said Oct. 1 in Ottawa.
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