Canadian Economy

• The Canadian economy continued its strong growth in 2000 at 4.7%. Business investment and consumer expenditure remained strong contributors to economic growth.

• Consumer inflation increased by 2.7%, driven mainly by energy price increases. Core inflation was 1.5%, within the Bank of Canada’s target range.

• Employment rose by 2.6% to 14.9 million in 2000, with the unemployment rate dropping to 6.8%, a level not seen since the mid 1970s.

• Economic growth in 2001 is expected to be slower (in the 3% range). This is somewhat dependent upon a soft landing for the US economy. The Canadian economy is expected to outperform the American economy as it will be bolstered by fiscal and monetary policies that will enhance domestic demand.

• Employment for 2001 is forecast to increase between 1% and 2%, with the unemployment rate staying near the level experienced in 2000.

• Energy prices are expected to moderate in 2001 bringing consumer inflation down somewhat.