Economic confidence makes a comeback - by Tavia Grant and Richard Blackwell

"Seems the economy is picking up"

Several economists, including those at Royal Bank of Canada, Toronto-Dominion Bank, UBS Securities Canada and the University of Toronto, have recently nudged up their economic growth forecasts for this year.

Improving global conditions are the chief reason, as the U.S. economy shows increased signs of vigour and Europe moves to contain its financial turmoil. Closer to home, high commodity prices will support Western Canada while low interest rates will underpin business and consumer spending.

“Some of the worst-case scenarios [on Europe, the U.S. and China] look a little less worrisome now than they did, say, in December,” said RBC chief economist Craig Wright, who is raising his projection for growth to 2.6 per cent this year. “The uncertainty is easing.”

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