Canada Expects Confirmation Of Recession End

November 30, 2009 2:44 p.m. EST

Ottawa, Ontario (AHN) - Canada is expecting official confirmation it has stepped out of recession when Statistics Canada issues the third quarter economic growth rate.

Economists have forecast a 1 percent annualized gross domestic product growth rate after a 3.4 percent contraction in the second quarter. The consecutive quarters of negative GDP growth rates are considered a recession.

Among the indicators of a positive Q3 report outlook are healthy hikes in retail sale and hours worked in the service sector and an increase in imports of machinery and equipment, according to the Toronto Dominion Bank.

CIBC World Markets, however, has a lower 0.2 percent GDP growth rate forecast because of an underperforming industrial sector and failure of car manufacturing plant restarts and job creation as expected. Export growth for Q3 was a result of shipment of inventories instead from the production line.

The CIBC, though, predicts a 4 percent economic growth rate for the fourth quarter because of an anticipated November job gain of 25,000.