As the new year begins, we wish everyone a Happy New Year and provide some GDP growth forecasts for 2010.
From a Globe Advisor article titled “Commodities Rally to Drive Provincial Rally”
-Scotia Economist Alex Coustas makes positive growth predictions for all Canadian provinces:
-British Columbia will see GDP growth of 3.0%, driven by Asian commodity demand and port activity as well. The province should also see some benefit from the Winter Olympics.
-Alberta and Saskatchewan will see GDP growth of 2.9% and 2.8% due to strong demand for oil and potash extraction.
-Ontario and its auto sector was one of the hardest hit provinces during the recession. However, the governement stepped in and kept automakers afloat. Ontario will see GDP growth of 2.7%.
-Manitoba and Quebec both held up well during the recession and should see GDP growth of 2.6% and 2.2%.
-The Maritime Provinces also weathered the recession fairly well and will therefore have a less pronounced bounce back. They will see GDP growth of around 2%. At 2.9%, Newfoundland will have the strongest GDP growth thanks to its strong exposure to energy and mining industries.
-Another optimistic article for Canadian markets. As long as there is strong demand for commodities in emerging markets, Canada will continue to benefit.
-Rohit Sehgal, fund manager for Dynamic Power Canadian Growth, one of the best performing Canadian Equity funds of the past 10 years, predicts that the rebound in energy demand in developing nations could push the TSX composite index to 13,000 next year (The index is at 11,700 as of Dec 31st, 2009)