Go to Main Content

Advertisement

By MoneySense Staff on November 27, 2013
Estimated reading time: 1 minute

Expect a lower Loonie, steady interest rates, rising house prices in 2014

By MoneySense Staff on November 27, 2013
Estimated reading time: 1 minute

Canada's economy and its affect on everyday investors was a hot topic Wednesday with RBC, the IMF, the Conference Board of Canada and Goldman Sachs all chiming in.

This article is 11 years old. Some details may be outdated.

Advertisement

The Loonie will fall: Goldman Sachs

Researchers at the U.S. investment firm expect the Canadian dollar to hit 88 cents USD in 2014 as our trade deficit grows, according to media reports. That, coupled with the rebound in the U.S. economy, could lead investors to short the loonie in favour of the greenback.

Ottawa should consider end to CMHC mortgage insurance: IMF

The International Monetary Fund report suggested that the federal government get out of the business of mortgage insurance because it exposes the government and taxpayers to risk and might distort the lending market as a whole in favour of mortgages over entrepreneurship. The IMF also recommended that Canada’s central bank hold off raising interest rates until there are signs of solid household spending, exports and investment. The think tank projected modest economic growth of 2.25% for Canada next year.

Canada will ride U.S. coattails: Conference Board

Meanwhile, the Conference Board of Canada suggested Canada could see real GDP growth of 2.4% in 2014 and 2.6% in 2015—assuming strong growth in the U.S.

Housing affordability is a growing concern: RBC

A new RBC report details the erosion of housing affordability in Canada. The bank said the biggest risk to maintaining manageable affordability levels would be a sharp rise in interest rates, but many analysts believe that is unlikely to occur as long as global economic growth remains moderate and inflation pressures soft. For more on the reports, head over to Canadian Business.

Comments Cancel reply

Related Articles

Two smiling men bump fists while playing wheelchair basketball

Canada Disability Benefit news, updates and how to apply

Applications for the new Canada Disability Benefit are open. Here’s how Canadians can apply for this long-awaited disability support...

Canada Disability Benefit news, updates and how to apply

Stock news for investors: Groupe Dynamite and Empire Co. release earnings

Good news for Canadian investors in these apparel and grocery companies, as both report higher earnings and sales.

Stock news for investors: Groupe Dynamite and Empire Co. release earnings

A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a 20 dollar bill issued at the Bank of Canada Museum in Ottawa on Wednesday, Sept. 4, 2024

When is open banking coming to Canada? Ottawa says “at the earliest opportunity”

Progress on open banking legislation has been slow. Here’s the latest news, plus which Canadian bank is already moving...

When is open banking coming to Canada? Ottawa says “at the earliest opportunity”

Is Canada in a recession?

If you’re worried about a recession in Canada, you’re not alone. Here’s what to expect and how you can...

Is Canada in a recession?

Muskoka chairs sit on a dock looking over Boshkung Lake, in Algonquin Highlands, Ont., Monday, Oct. 5, 2020.

Co-ownership is making Canadians’ cottage dreams more affordable

Want to buy a cottage but you’re priced out of the market? Co-ownership could be the answer. Here’s what...

Co-ownership is making Canadians’ cottage dreams more affordable

Crypto shows off its newfound political might

Largest U.S./Canadian crypto exchange adds top Democratic strategist, continuing to broaden political reach.

Crypto shows off its newfound political might

People attend a job and continuing education fair in Montreal on Thursday, Oct. 5, 2023.

Ottawa to expand the Canada Summer Jobs program for youth

Government to offer more subsidies to employers as one in five students struggles to find summer employment.

Ottawa to expand the Canada Summer Jobs program for youth

A Canadian woman banking on her laptop at home.

Is Wealthsimple a bank? Not exactly, but it’s launching new “banking” services

Wealthsimple is flexing against Canada’s big banks. Here’s how it plans to get your business.

Is Wealthsimple a bank? Not exactly, but it’s launching new “banking” services

A worker on a ladder works on the exterior of a new home under construction.

Here’s how much a GST break could save first-time home buyers

First-time home buyers in Canada could save hundreds on monthly mortgage costs through the federal government’s plan to waive...

Here’s how much a GST break could save first-time home buyers

Canadian couple in their first home happy the BoC held its rate.

Making sense of the Bank of Canada interest rate decision on June 4, 2025

Making sense of the Bank of Canada interest rate decision on June 4, 2025