Canadians can expect economic growth to slow considerably in 2001 and 2002, according to The Conference Board of Canada’s latest economic forecast.

Available evidence continues to support the Board’s predictions that Canada will not descend into recession.

According to the report, this view is supported by the underlying strength of the economy before September 11. Inventories were generally under control, other excesses were not evident, the unemployment rate remained low, and substantial fiscal and monetary stimulus were in place.

“The current outlook calls for four successive quarters of virtually no growth through the first quarter of 2002,” said Jim Frank, Vice President and Chief Economist. “The Bank of Canada sharply cut interest rates last month, and is expected to follow with a matching cut this month. This additional stimulus is intended to shore up confidence. Short-term interest rates at current levels have, in the past, preceded periods of significant growth. We expect that growth will accelerate sharply in the latter half of 2002.”

Real gross domestic product (GDP) growth is forecast at 1.5% this year, down from 4.7% in 2000. Real GDP growth is forecast at 1.2% in 2002.