2  BIS central bankers’ speeches  In the meantime, stock prices have recovered to their level prior to the Lehman shock and developments in U.S. financial markets have been favorable.
The global economy retains the capacity to disappoint further, the complex adjustment to lower terms of trade will restrain Canada’s growth over much of our forecast horizon, and households’ reactions to the government’s fiscal measures will bear close monitoring. We have not yet seen concrete evidence of higher investment and strong firm creation.