The industrial world, including Canada, is headed for a growthless recovery next year, says the Organization for Economic Co-operation and Development.
In a new outlook that is a slight improvement over its March projection, the organization is in line with most forecasters in predicting the global recession will end late this year.
But it presents a more gloomy prospectus for next year, estimating growth in Canada at 0.7 per cent — so low that even the U.S. tops it with a modest 0.9 per cent advance. The broad consensus of economists see Canada growing at slightly above two per cent next year. The Bank of Canada has said growth will reach 2.5 per cent.
“The pace of contraction appears to be slowing, but recessionary conditions are expected to linger through the third quarter, with only a slow recovery thereafter,” the OECD says.
“Unemployment is projected to keep rising until early 2010 and inflation pressures to stay muted.”