The Canadian Press - ONLINE EDITION
Posted: 03/28/2013 5:02 AM | Comments: 0
Last Modified: 03/28/2013 7:40 AM
PARIS - Canada is expected to lag several Group of Seven countries in the first quarter even as the global economy begins to rebound, the Organization for Economic Co-operation and Development said Thursday.
The international economic think-tank estimates that the Canadian economy will show growth of just 1.1 per cent in the first three months of this year, much slower than the United States or Japan and below the G7 average.
However, it is expected to pick up steam and grow by 1.9 per cent in the second quarter, slightly above the average.
Statistics Canada reported later Thursday that Canada's gross domestic product grew by 0.2 per cent month-to-month in January, the beginning of the first quarter. The agency's report for the full quarter won't be out until May 31.
The G7 countries — Canada, the United States, Japan, Germany, Britain, France and Italy — are expected to post an average growth rate of 2.4 per cent in the first quarter ending March 31 and 1.8 per cent in the second ending June 30.
The OECD believes the U.S. economy advanced 3.5 per cent in the first quarter, which ends this month, but that its growth will moderate in the second quarter to 2.0 per cent.
Likewise, the OECD expects Japan's growth will be a robust 3.2 per cent in the first quarter but slow in the second to 2.2 per cent.
Among the European G7 countries, Germany will be the only one growing faster than Canada — 2.3 per cent in the first quarter and accelerating to 2.6 per cent in the second.
The U.K. economy is expected to have only 0.5 per cent growth in the first quarter and 1.4 per cent in the second, while France's economy is expected to contract by 0.6 per cent in the first quarter then expand by a modest 0.5 per cent in the second.
Italy's economy is expected to shrink in both quarters, dropping 1.6 per cent in the first and 1.0 per cent in the second.
In an interim assessment that focused on the G7, the OECD said that the European Central Bank needs to do more to encourage banks to lend and economies to grow.
It notes that countries that use the euro are making progress in reducing their debts, but that some should be allowed to meet their targets more slowly to temper the impact on their economies.
Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.
Having problems with the form?Contact Us Directly
Winnipeg Sun returns city money for indigenous-reporter internship
Key of Bart: God Rest Ye Premier Selinger
Newest Jet to meet teammates on game ice
Infant remains in locker may be decade old: Brodsky
Edmonton police issue Amber Alert for 3 children
Donated coins buy Christmas cheer
Winnipeg Tory MP under preliminary ethics probe in possible conflict of interest case
No charges laid against man who killed teen mugger
Police seek help in finding 16-year-old boy
Four charged after gun stash found
Two elderly pedestrians struck by vehicle near McPhillips and Jarvis
Man charged with human trafficking in connection with Brandon sex trade
Portage RCMP charge woman with second-degree murder
Police-union president supports probe
Manitoba lags behind other provinces in organ donations
Western Canada Aviation Museum earns royal designation
Conference on civilian internment to be first of its kind in Canada
Manitoba inflation rate declines
Jets to broadcast Teemu Selanne Tribute Night at MTS Centre
Feds charge too much for pot, users say
Retail sales soften in October
Perseverance paying off for Jets' D-man Brouillette
Free transit to be offered on New Year's Eve
Pakistan executes militants and bombards tribal areas
Mild weather moves in just before Christmas
Humane society CEO will make his exit
WAG hires Seema Hollenberg
Palestinians call Canada on Geneva boycott
Exact cause of fire at seniors' home unknown
Majority still have holiday shopping to do
Australian woman arrested in deaths of 8 children
Dog injures Wyoming man in accidental shooting
Observers say new rules will put more women on boards
HuffPost seeks slot on Canadian TV dial
Magnotta jury to deliberate on weekend
Wynne hopes Harper has no Ontario 'vendetta'
Ottawa police say 101-year-old man robbed