TORONTO (Reuters) - Canada’s economy should achieve growth of about 1 percent this year as higher incomes and job creation support activity, Finance Minister Jim Flaherty said.
“As expected, the pace of economic activity remains slow as a result of the U.S. slowdown and its impact on our export sector,” he told reporters on Friday.
“For 2008 as a whole, I expect real GDP to increase by about 1 percent,” he said.
“Solid growth in income and employment in the second quarter should help support economic activity going forward.”
Canada’s economy grew by a weaker-than-expected 0.3 percent in the second quarter, Statistics Canada reported, narrowly avoiding the common definition of a recession.
GDP shrank 0.8 percent in the first quarter.
Reporting by John McCrank; Writing by Ka Yan Ng; Editing by Ted Kerr