A survey of private sector economic forecasters shows a slightly brighter outlook for Canada’s GDP growth in 2010, the Department of Finance said Monday.

Finance’s March 2010 Survey of Private Sector Forecasters pegs the average forecast for the year’s GDP growth at 3.1%, up from the 2.6% forecast in December. At the same time, forecasts for 2009, 2011 and 2012 have each been lowered just 10 basis points.

“Overall, the March survey results suggest that the near-term outlook has improved since the December survey was conducted,” it says, noting that the average forecast from the December survey was the basis of the fiscal projections in federal budget, handed down in early March.

“For 2010, private sector forecasters have revised up their forecasts for both real and nominal GDP and have revised down their forecast for the unemployment rate,” it says. Unemployment is now expected to be 8.1%, down from 8.5% in December.

“Over the medium term, the private sector average growth outlook remains broadly the same as in budget 2010,” Finance notes. “As a result of stronger expected growth in 2010, the level of nominal GDP is expected to be about $14 billion higher in 2014 than projected in the budget. This suggests that the medium-term fiscal forecast presented in budget 2010 remains on track.”

IE