Canadian exports are expected to add to GDP growth, but continue to be restrained by weak foreign demand and ongoing competitiveness challenges. Economic activity in the third quarter of last year was weak owing in part to transitory disruptions in the energy sector.
We continue to expect economic activity to pick up through 2013, but near-term momentum now appears to be slightly softer than previously anticipated. These and other developments will all be taken into consideration as we revise our economic projections, to be published on January 23 with the next interest rate decision.