February 12, 2010

Economic update

What the latest U.S., Canada GDP numbers mean for the recovery

New gross domestic product figures for the U.S. and Canada are strong, says CanaData chief economist Alex Carrick. But what do they say about the state of economic recovery in both countries?

“We’ve got two questions,” Carrick notes. “Given the strength of the numbers, when will labour markets turn around. And secondly is the U.S recovery self-sustaining at this point?

“We’re going to have a high unemployment rate throughout this year,” he adds, “because even as jobs are added people who left the labour force are going to come back into the labour force, and that’s going to keep the unemployment number high.”

“But the increase in jobs is going to be very positive for the economies of both the United States and Canada.”

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