Canada » Outlook

International Property Brokers forecast that private consumption growth in 2006 will be 3.1% and GDP growth will be 2.8% to 2.9% in 2006 and 2007.The current account surplus will shrink in both the years. 

The new conventional government is moving ahead firmly to put into practice the platform that brought it to office at the election. The Conservatives' first budget will set out a program of tax cuts .The Prime Minister, Stephen Harper, is living up to his pre-election promise of building closer ties with the US government and trade relations with the US will improve.

The Bank of Canada (central bank) is on a monetary tightening course and will continue to raise rates in 2006. The Bank of Canada raised its standard interest rate in April.