As a result, the Canadian economy has expanded much more moderately this year than in 1997, when it grew by more than 4% (fourth quarter over fourth quarter). As we look ahead to 1999, the considerable degree of global uncertainty that is still lingering makes all economic forecasts more tentative than usual.
Because financial stability is so important for household and business confidence, the expansion of our economy will be influenced by how quickly global financial markets stabilize. Still, with accommodative monetary conditions and recent solid employment gains, spending by Canadian households and businesses, while slowing, should continue to contribute to an expanding economy.