Bennett Jones Business Forecast 2009

As a year of increased economic uncertainty approaches, Bennett Jones provides its forecast for Canadian business in 2009.

Short Term Economic Outlook Grim

Despite stimulative efforts of governments and central banks worldwide, global growth in 2009 is likely to be less than 2% and 2010 only a little better. Real recovery should take hold in 2011. Commodity prices are likely to be weak through 2011 but recover strongly thereafter. Canadian and U.S. growth will be negative in 2009 with very weak private investment and household consumption. Assuming significant fiscal stimulus in both countries, growth should begin to pick up in 2010 although the level of output in Canada is not likely to recover to the mid-2008 level until end of 2010. Outlook for 2011 is much brighter in Canada and the U.S. although unemployment will remain elevated.