CANADA ECONOMY EXPECTED TO GROW MODERATELY

  Canadian economic growth is expected to
  slow further in 1987, but an improved the trade picture should
  keep the country from recession, economists said.
      "The economy is ready for about a 2.0 pct rate of growth
  over the course of 1987," said Carl Beigie, Chief Economist at
  Dominion Securities Pitfield Ltd.
      Statistics Canada reported that gross domestic product,
  grew 3.1 pct in 1986, the fourth year of continuous expansion,
  but down from 1985's four pct.
      In the final quarter, GDP, in 1981 prices and at annualized
  rates, rose a slight 0.2 pct after expanding 0.8 pct in the
  third quarter.
      "Essentially it is a flat performance," said Warren Jestin,
  deputy chief economist at the Bank of Nova Scotia.
      Economist Wendy Smith Cork of the brokerage Nesbitt Thomson
  Bongard Inc said "it shows the economy is not moving along very
  steadily, it's not a very promising number."
      "We weren't surprised, we expected to see one bad quarter
  in Canada, but we don't think there will be a recession," she
  added.
      The rise in GDP was below the 3.3 pct increase forecast by
  Federal Finance Minister Michael Wilson in his budget last
  month. He also projected the economy would expand  2.8 pct this
  year.
      Many economists are less optimistic, predicting growth will
  likely be in the 2.0 to 2.2 pct range.
      Statistics Canada also reported the country's trade
  performance deteriorated sharply last year as the deficit in
  the current account rose to a record 8.8 billion Canadian dlrs
  from the previous year's shortfall of 584 mln dlrs.
      "The sharp increase in the deficit originated from
  merchandise trade transactions where imports continued to
  advance strongly whereas exports were virtually unchanged," the
  federal agency said in a statement.
      The merchandise trade surplus was pared to 10.13 billion
  dlrs in 1986 from 17.48 billion dlrs in 1985.
      But economist Cork said the expected upturn in the U.S.
  economy will lead to increased demand for Canadian goods, and
  help fuel the country's modest expansion. Nearly 80 pct of
  Canada's exports are shipped to the U.S. each year.
  

