Toronto-Dominion Bank, Canada’s second-largest lender, reduced its forecast for the nation’s economic growth this year and next to reflect a U.S. economy that had a deeper recession than previously reported, according to Craig Alexander, the bank’s chief economist.
TD cut its growth forecast to 2.2 percent this year, from 2.8 percent. It reduced the forecast for next year to 1.9 percent, from 2.5 percent, and raised the 2013 outlook to 2.6 percent, from 2.1 percent.
“The downgrade to Canadian growth this year and next is largely based on a downgrade to the external environment in which the Canadian economy is operating,” Alexander said today in a telephone interview from Toronto.
Toronto-Dominion lowered its U.S. forecast for this year and next to below 2 percent after the Bureau of Economic Analysis revised its numbers, showing that the recession was 25 percent deeper and was a third longer than forecast, and the economy stalled in the first half of the year, Alexander said.