RBC takes more optimistic view of Canadian economy, raises growth forecast

TORONTO – Economists at the Royal Bank group (TSX:RY) say Canada’s growth appears to be stronger than previously thought.

RBC Economics has raised its estimate for the country’s 2013 economic growth to 1.9 per cent and says 2014 growth will be about 2.9 per cent.

Both estimates are higher than the Bank of Canada’s most recent outlook and several other assessments.

As others have noted, RBC says the United States has been more resilient than anticipated in the early months of this year.

The bank has concluded that Canada will be the beneficiary of stronger demand from its largest trading partner.

RBC chief economist Craig Wright also says Canadian corporations are financially healthy and have the capacity to accelerate their investments for growth.