(Dow Jones Newswires-WSJ)
Canada’s export sector is expected to remain resilient in 2012 in large part due to increased momentum in the U.S. economy, which is set to power global economic growth and offset weakness in Europe and emerging markets, says the country’s export-credit agency.
Export Development Canada, in an update to its fall forecast, said risks still abound – from Europe’s financial strains, which would “scar” global growth, to increased geopolitical turmoil linked to Iran – and, as a result, has downgraded its global outlook. Nevertheless, recent momentum in the U.S. economy looks sustainable and will provide a jolt the global economy needs, said EDC’s chief economist, Peter Hall.
“Our real point is the U.S. is taking the clear lead here, breaking away from what’s happening in other economies,” Hall said in an interview. “The U.S. has the wherewithal to go it alone and charge ahead.”
EDC forecasts global growth to hit 3.7% in 2012, down from its previous forecast of 4.3% issued in October. This is due in large part due to a ratcheting down of growth prospects in Europe, to a meagre 0.4% expansion from its previous call for 1.6% growth. Canada is set to post 2% economic growth, from the original 2.3% projection. Read more here.
Date: January 12, 2012