(March 5 – 12:00 ET) – The Canadian Chamber of Commerce forecasts that annual real GDP growth in Canada will slow to about 2.5%, but remain higher than the estimated annual real GDP of 2% for the United States. The announcement came today during a meeting of the chambers’ board of directors held in Victoria, British Columbia.

“The decline in the estimated annual real GDP for Canada is a result of weaker exports, reduced manufacturing output and more moderate business investment,” said Nancy Hughes Anthony, president and CEO of the Canadian Chamber of Commerce.

“In response to this economic outlook, we anticipate that the Bank of Canada will cut the bank rate by up to 50 basis points on March 6,” she added.

The chamber stated the a reduction in the bank rate combined with personal income tax cuts in many provinces will help stimulate consumer spending. In particular the chamber believes the rate cut will stimulate demand in the second half of the year.

The chamber urged the Minister of Finance, Paul Martin, to deliver an economic update as quickly as possible.

“What business, and all Canadians want, is for the Minister of Finance to tell us what he thinks is happening to the economy — we don’t need a budget to do that,” concluded Hughes Anthony.