The worst of the economic crisis has now passed, and though some wobbly years remain, former Bank of Canada Governor David Dodge expects global growth to speed past 4% by 2015.
“We are maybe five-sevenths of the way along a rather bumpy road for deleveraging in the OECD world, in the advanced economies,” Dodge said Friday in Lake Louise, AB, at the Bennett Jones Business Forum. “So while we’ve got a bumpy road over the next two or three years, we are getting to the latter stages of that.”
Dodge pointed to several reasons for hope, most notably close to home. “Here in North America, the deleveraging in the financial sector is largely complete, and that gives us some optimism,” he said. The same is true in US households, which have dug out of debt holes more rapidly than expected.
They “have made some very real progress, their net worth position is back a little over 80% of where it was and closing fast,” he said.
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Angela Calla, AMP Dominion Lending Centres