Canada's Economic Growth Will Slow This Year

By: Errol Mars

TD Back is forecasting that Canada's economy will experience slow growth this year based on the slowing U.S. economy.

Canada's economy is expected to escape a recession but the slowing US markets will have an effect on certain area's our economy.

"The west will remain in the best shape to weather the economic headwinds, while central Canada - and notably Ontario - will be in the worst," said Don Drummond, TD's Chief Economist.

Translation, if you want to make money move out west because Ontario is in for a ruff ride. Cash is the most important thing right now.

Until recently, economic indicators suggested the United States could potentially skirt a recession. This view is now in question given the broad-based nature of jobs losses in each of the first two months of 2008.

U.S. troubles will continue to wash onto Canadian shores, contributing to modest 1.1 percent economic growth in 2008. Two direct linkages between the countries will continue to harm the domestic economy.