6 Owing to the improved financial and economic conditions, 2010 should mark the hand-off from growth that is heavily influenced by public policy to growth that is largely determined by the private sector. By next year, the private sector should be the sole contributor to domestic demand growth in Canada. Canada’s corporate sector begins with a number of advantages.
Domestic demand is expected to be relatively strong, providing a base of support for some sectors. Corporate balance sheets are in outstanding shape, and margins have held up very well for this stage in the economic cycle. In addition, Canada’s overall financial conditions are now contributing to, rather than retarding, the recovery.