Morning Zeev
Has CIBC got it right?
newswire.ca
No Recession in 1999, CIBC economists predict
Slower Growth Expected in Canada and U.S.
TORONTO, Nov. 12 /CNW/ - Canada's economy is expected to slow to 2 per
cent growth in 1999, compared with approximately 3 per cent growth this year,
but we are not headed for a recession, according to a new CIBC economic
forecast.
In the U.S., CIBC forecasts that economic growth will be cut in half in
1999 to just 1.8 per cent compared with 3.5 per cent this year.
''In the short term, the Canadian economy looks reasonably healthy,''
said Joshua Mendelsohn, CIBC chief economist. ''However, the effects of recent
developments outside Canada have cast some shadows over 1999.''
Several factors are putting the brakes on U.S. growth, which will
influence the direction of the Canadian economy. Mounting trade deficits due
to slow growth of U.S. exports, lingering effects of a credit squeeze on
investment, and an expected softening in consumer spending are conspiring to
slow down the U.S. economy.
The easing of interest rates by the U.S. Federal Reserve Board and other
central banks, as well as the determination of the G-7 countries to ensure
greater financial stability in the world economy have had a positive impact on
markets and confidence. The G-7 countries have underscored the fact, however,
that the balance of risks in the world economy has shifted from inflation
concerns to slow growth in 1999.
CIBC is one of North America's leading financial institutions. CIBC's two
main operating businesses are Personal and Commercial Bank, which includes
personal banking, commercial banking, insurance and international operations,
and CIBC World Markets, which includes global corporate and investment
banking. CIBC offers a full range of products and services through its
comprehensive electronic banking network, branches and offices across Canada
and around the world. |
