OTTAWA - The Bank of Canada says the the country's recovery from recession is becoming more entrenched, but Canadians shouldn't expect the economy to return to normal for some time.
The central bank's most recent outlook on the domestic and global situation contains both good and bad news for Canadians.
It says growth in the second half of this year will be greater than projected in July, with gains in economic output of two per cent and 3.3 per cent in the third and fourth quarters.
That's up from the July estimates of 1.3 per cent and three per cent respectively.
But going forward, the Bank of Canada expects that the continuing strong dollar will undercut exports and that growth will fall below what might have been expected.
It won't be until late 2011 - two full years from now - that Canada's economy will again be hitting on all cylinders, the bank says.
But the central bank believes the evidence is accumulating that the global recover is well underway, and that the risks of a major setback have diminished.
