The Bank of Canada has cut its predictions for upcoming GDP growth. From the Globe and Mail article:
"But offsetting the higher inflation, the bank lowered its economic
growth forecasts for the rest of the year. It expects real gross
domestic product to post annualized growth of 2.3 per cent in the third
quarter and 2.4 per cent in the fourth quarter, down from 2.6 per cent
and 2.5 per cent, respectively, in the April projections. It sees GDP
growth of 2.1 per cent for all of 2014, down from 2.3 per cent
previously, although its 2015 growth projection remains at 2.4 per cent."
Predictions of US GDP growth for 2014 have also been ratcheted down of late. So 2014 is now down to 2.1% instead of 2.3%. There's certainly a possibility of 2014 being below 2%. Obviously Alberta and Saskatchewan will grow a lot, however what happens with Ontario and Quebec will be key. Curiously Quebec did very well in the first quarter, but we don't know Ontario's number yet. In the 2014 budget document, Ontario is predicting 2.1% GDP growth overall for 2014.
I'm a bit surprised about 2015 GDP growth staying at 2.4%. I expect as we get closer to 2015, that estimate will go down.