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Canadian GDP expected to turn up in 2010

Ottawa-- RBC Economics said the Canadian economy would grow in 2010 and 2011 after a 2.9 percent drop in 2009.

With the financial crisis behind us and the U.S. economy on the mend, Canada's economic growth is expected to rise steadily throughout the next year," Craig Wright, senior vice-president and chief economist, RBC.

"While challenges remain, a peak in stimulus and infrastructure spending across the federal, provincial and municipal governments, along with low interest rates, should result in a sustained recovery," he said.

The report predicts consumer spending in Canada will rise 2.3 percent in 2010 and 2.7 percent in 2011. Unemployment is expected to peak at 8.7 percent before dropping to 7.8 percent in 2011.

Copyright 2009 by United Press International.

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