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Bank predicts OK year end for 2011

Published by Steve Coleman on December 02, 2011

A Canadian bank is predicting solid economic growth this year, despite the early setbacks.

Between disruptions in Japan and Alberta wildfires, BMO Economics is predicting the turnaround will be close to the Bank of Canada's two per cent inflation benchmark.

"While auto-sector supply chain disruptions and Alberta wildfires carved into second-quarter growth, the third quarter saw a rebound to 3.5 per cent annualized GDP growth, largely due to a snapback in net exports," said Michael Gregory, Senior Economist, BMO Capital Markets in a statement. "We expect 2011 to end up with 2.3 per cent growth for the year."

European debt, slow American economic growth, less demand from emerging markets and lower consumer and business confidence at home are all predicted to create "headwinds" that keep GDP growth hovering in the 2 per cent range in 2012.

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