The Toronto Dominion (TD) bank lowered its growth predictions for Canada's economy both in 2012 and 2013. The bank predicts that commodity prices will be weaker in the next two years and exports will grow slower. However at least the prediction is still for positive growth.
The bank predicts growth of 1.7 per cent in 2012. In September it had predicted growth of 1.9 per cent. In 2013 the growth is now predicted at 2.2 per cent as compared to 2.6 per cent back in September. The European financial crisis and a possible European recession will put a damper on global growth.
The bank sees unemployment now at 7.4 per cent to increase to from 7.5 to 8 per cent. The bank also sees high personal and government debt slowing growth. On the European crisis the bank was quite negative. It predicts that Greece will likely default on its debt next year. European banks will be forced into buying bonds of member countries and become a lender of last resort. Progress towards a fiscal union will take years according to the bank. For more see this article.