TORONTO, March 11 (UPI) -- Canada's economy is emerging from recession with anticipated gross domestic product growth of 3.1 percent this year, RBC Economics said in a report Thursday.
The report cited government stimulus investment, improved credit markets and a recovery in consumer spending as being the drivers behind the growth, which it said would continue at a modest pace into 2011.
"Going forward, additional growth should be sustained by strength in the housing market and investment by the private sector, as corporations increase payrolls and investment," said RBC Chief Economist Craig Wright.
Consumer spending is forecast to expand next year by 2.8 percent and business investment to rise by more than 7 percent, resulting in Canada's GDP expanding by 3.9 percent in 2011, the report said.
Unemployment rates are expected to average 8.4 percent in 2010 before falling to 7.7 percent in 2011, RBC said. The most recent unemployment figure from Statistics Canada was 8.3 percent in January.
