Forward Outlook

Economic and Political Outlook

As an affluent, high-tech industrial society in the trillion-dollar class (with the eighth largest economy in the world), Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards.

The current Conservative government is expected to survive its full term to October 2009. The Economist expects the next election to return another Conservative minority government.

The Economist Intelligence Unit (EIU) expects the downturn in the US and the strength of the Canadian dollar to cause Canadian real GDP growth to slow to 1% in 2008 but recover to 1.9 per cent in 2009.

Given continued global inflationary pressures, particularly from oil prices, the EIU have revised up their forecast for headline inflation in 2008 from 1.7 per cent to 1.9 per cent.

Tourism Outlook

The Canadian economy is strong and is not yet being materially affected by the state of the US economy. As a result, consumer confidence remains high. Tourism New Zealand's partners in Canada are positive about the bookings for the New Zealand summer ahead. Air New Zealand will increase services to four flights a week from December.

Sources: Tourism New Zealand Regional Rap, www.economist.com (Canada Country Briefing)