Canada Reports GDP Rise of 3.8% On Strong Exports
OTTAWA -- Canada's gross domestic product rose 3.8% in 1997, led by strong exports to the U.S. and a big increase in business spending on machinery and equipment, said Statistics Canada, a government agency.</br></br>Last year was the sixth consecutive year to show a rise in Canada's GDP, the total value of the nation's output of goods and services. The 1997 result almost matched last year's U.S. GDP growth of 3.9%.</br></br>Canada's robust expansion is expected to continue. In a recent survey of economists, the average forecast was for 3.5% Canadian GDP growth in 1998 and 2.9% in 1999.</br></br>Prime Minister Jean Chretien, in a speech yesterday, said "low interest rates, improved consumer and business confidence and booming exports have revived the Canadian economy." He also hailed a federal budget projection that in the current fiscal year ending March 31, the Canadian government will show its first balanced budget in almost 30 years. Mr. Chretien is expected to underscore his country's fiscal and economic achievements in a luncheon speech today to the Economic Club of New York.</br></br>Canada's latest economic indicators were well received on financial markets. The Toronto Stock Exchange's 300-share composite index closed up 20.61 points, or 0.3%, at 7113.10 yesterday. The Canadian dollar rose to 70.51 U.S. cents from 70.23 U.S. cents Friday.