TD Predicts Slow Growth for Canada

Kate Yule
Tuesday, November 10, 2009

The Toronto-Dominion Bank isn’t holding much optimism for the economy.

The bank has downgraded Canada’s potential for economic growth. It now says growth without spiking inflation will be just 1.6 per cent over the next three years.

TD says that corporations have many restructuring challenges ahead, and that will slow down growth in the short term.

Even when the economy fully recovers, TD expects annual growth of about 2.1 per cent into 2019.

The bank is even grim in its long-term forecast. TD is predicting that an aging population will slow growth in the labour force. It says Canada will need to make significant gains in productivity to keep the economy on track.