Indeed, the national accounts indicated that the Canadian economy grew by 3.7 per cent in the first quarter of this year – more than a full percentage point higher than we projected in the  BIS Review 65/2007  3  April Report.
So, the economy is now judged to be operating further above its production potential than was earlier thought to be the case. Inflation in Canada has also been stronger than we anticipated in April. Inflation for services prices continues to run well above 2 per cent, and inflation for goods prices – particularly semi-durable goods – has been higher than anticipated.