IMF Staff Country Reports

This 2007Article IV Consultation highlights that after surging in the first quarter of 2006, real GDP growth in Canada slowed subsequently, in part reflecting a cooling in the United States. Domestic demand remained the main driver of the economy, with private consumption expanding a robust 3¾ percent and business investment growing 8 percent. Financial sector performance remained strong in 2006, largely reflecting continuing benign global market conditions. Long-term interest rates remained low despite monetary tightening, as did spreads on private instruments, reflecting default rates that continue to be low.