Bank of Canada deputy governor Jenkins says the outlook for the global economy has deteriorated recently and that 2009 will be a difficult year for Canada’s economy. The official feels that economic projections are subject to unusually high degree of uncertainty. The bank currently sees growth dropping real 1.2% in 2009 on average annual basis and then rebounding 3.8% in 2010.
The BOC repeats that recovery to be supported by past C$ depreciation and by timely monetary/fiscal policy. The deputy governor feels World policymakers have acted aggressively and creatively to combat the economic crisis, but that the task is far from complete.
