Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : World Outlook -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (1724)	4/14/2003 9:39:07 PM
From: Condor	Respond to of 49435

Canada leads and has been leading the G-7 for awhile but our dollar stays in lockstep with the US. +++++++++++++++++++++++++++++++++++++ Canadian economy expected to lead again: report By Ottawa Business Journal Staff Wed, Apr 9, 2003 2:00 PM EST Despite the economic impact of the U.S.-led war on Iraq, Canada should remain the strongest of the G7 economies in 2003, the International Monetary Fund said Wednesday. In its semi-annual World Economic Outlook, the IMF forecast that the Canadian economy will achieve annual growth of 2.8 per cent this year and 3.2 per cent in 2004. By comparison the world's largest economy, the U.S., will grow by only 1.9 per cent this year and 2.9 per cent in 2004. By the IMF's measure, Canada's gross domestic product, the broadest measure of a nation's economic activity, gained by 3.4 per cent in 2002. That compared to an average of 1.6 per cent among the other G7 nations. However, the IMF added the caveat that "prospects remain uncertain as a result of the slower pickup in the United States since mid-2002 and would clearly be affected were downside risks to the U.S. recovery to materialize." In recent weeks politicians, chief executives and various other interested parties have warned that Canada's opposition to the Iraq war could provoke economic retaliation from the U.S. The IMF did not delve into that controversial subject, but did say any "rifts" that may have emerged between the U.S. and other nations must be quickly resolved. Germany and France were among the most vocal opponents of the invasion. For Canada the IMF said the greatest economic threat is lower U.S. spending as businesses and consumers hold onto their money until the economy improves. Lower demand for autos and other durable goods has hammered the U.S. manufacturing sector over the past year and remains a risk to Canada's export sector. In its global forecast, the IMF remained more optimistic than Wall Street brokerage Morgan Stanley. The IMF is forecasting global growth of 3.2 per cent in 2003, better than last year's three per cent but still below potential. "The global recovery is expected to continue during 2003, albeit at a relatively subdued pace, with GDP growth in the major currency areas remaining below potential until the end of the year [if the war in Iraq is resolved quickly]," the report said. Last week, Morgan Stanley became the first Wall Street brokerage to predict a global recession, with a forecast of 2.4 per cent. Global growth below 2.5 per cent is considered recessionary. The IMF also said that an overvalued U.S. dollar, volatile stock markets, the SARS virus and the chance that the housing boom will finally come to an end remain the other primary risk factors to the North American economy. ottawabusinessjournal.com