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