Thursday, December 17, 2009

The R word is back, this time it's recovery!

RBC reports that the new R word is recovery, not recession
they are reporting that many aspects of our economy and many sectors will continue to grow in 2010
a positive report indeed,

Recovery — The New R-Word

  • 􀁓 Forecasters revise up projections for world growth in 2010.
  • 􀁓 More stable financial market conditions and an improvement in economic indicators support forecast upgrades.
  • 􀁓 Easy monetary policy and fiscal support to continue in 2010.
  • 􀁓 U.S. housing market turns the corner as low mortgage rates and tax rebates stimulate demand.
  • 􀁓 Pace of U.S. job cuts slowing, but payrolls still falling; unemployment rate near 26- year high.
  • 􀁓 Sub-par consumer recovery expected as households repair balance sheets and income gains fall short.
  • 􀁓 Businesses pulled back on capital investment, but improving credit conditions and lower borrowing costs to support growth in 2010 and 2011.
  • 􀁓 U.S. inventory correction during the recession sets stage for rebuilding to occur over the next two years.
  • 􀁓 U.S. real GDP growth to average 2.5% in 2010 and a stronger 3.4% in 2011.
  • 􀁓 Fed to wait until recovery has proven to be durable before raising the funds rate.
  • 􀁓 Canada's economy struggles to climb out of recession.
  • 􀁓 Bank of Canada keeps policy stimulative and commits to holding rate at low level until the end of Q2-2010.
  • 􀁓 Federal government pours on fiscal stimulus.
  • 􀁓 Low rates spur a rebound in the housing market with sales and prices surpassing prerecession peaks.
  • 􀁓 A strong currency and improved access to financing sees corporate Canada boost investment.
  • 􀁓 Trade sector to weigh on the economy in 2010 as import demand beats exports; but, tide to turn in 2011 as the U.S. economy gains momentum and demand for commodities rises.
  • 􀁓 Canada's recovery to build momentum with real GDP growth of 2.6% in 2010 and 3.9% in 2011.

I hope this finds you Happy and Healthy!

All the Best!


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

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