Rising energy prices, low interest rates, and federal stimulus will help Canadian economic growth "snap back" after a second-quarter contraction, RBC Economics said Wednesday. "The Alberta wildfires and sharp pullback in oil sands production in May took the Canadian economy on a brief detour into negative growth," said Craig Wright, senior vice-president and chief economist at RBC. No help for loonieFor the full year, RBC sees Canadian GDP growth accelerating to 1.8 per cent in 2017 from 1.3 per cent in 2016. The Bank of Canada's latest outlook projects full-year growth for 2016 of 1.3 per cent, and 2.2 per cent next year. RBC is forecasting oil prices will gradually rise to $50 US a barrel this year, and move up to $60 US per barrel in 2017.

Source: CBC News September 14, 2016 16:07 UTC