However welcome, our recovery is relatively modest in comparison to its predecessors and has relied heavily on housing and personal consumption. The limitations of this reliance are becoming evident. In recent months, the speed of the recovery has diminished.
A modest pace of growth can be expected in coming months as our economy faces considerable headwinds from both the external sector and the limits of household balance sheets. Allow me to expand. Housing activity in Canada is declining markedly from high levels, as the Bank had expected.