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ECONOMIC AND FINANCIAL MARKET OUTLOOK
September 2012
RBCs growth forecasts
% change, year-over-year The Dog Days of Summer
3.0
2012 2013
2.5 • European woes and uncertainty about the vigour of other advanced econo-
2.0 mies resulted in disappointing growth in the first half of the year.
1.5 • Both the euro area and UK economies are contracting.
1.0 • Weakness bled into emerging economies with China’s economy slowing.
0.5 An easing in policy sets up for a strengthening in demand later this year.
0.0
• In the US, despite a late-summer run of improved economic reports, con-
-0.5
cerns about the upcoming election and fiscal policy tightening will keep
-1.0
US Canada EZ UK growth moderate with the economy’s wheels turning more quickly once
the political outcome is clarified.
Source: RBC Economics Research
• Canada’s economy is rumbling along and will likely pick up pace as tem-
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