A quarterly report of the Bank of Canada’s Governing Council, presenting the Bank’s base-case projection for inflation and growth in the Canadian economy, and its assessment of risks.
The global economic recovery is entering a new phase. In advanced economies, temporary factors supporting growth in 2010—such as the inventory cycle and pent-up demand—have largely run their course and fiscal stimulus will shift to fiscal consolidation over the projection horizon.
The global economic recovery is proceeding but is not yet self-sustaining. Greater emphasis on balance sheet repair by households, banks, and governments in a number of advanced economies is expected to temper the pace of global growth relative to the Bank’s outlook in April.
Global economic growth has been somewhat stronger than projected, with momentum in emerging-market economies increasing noticeably.
The global economic recovery is under way, supported by continued improvements in fi nancial conditions and stronger domestic demand growth in many emerging-market economies.
