The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Economy heading for modest recovery, economist saysBy Dominik Kurekthrough the recession, he said.quality of jobs, such as full-time versus part-OAKVILLE BEAVER STAFFFurthermore, lending standards were bettertime jobs, still need to catch up. He said the gapmaintained in Canada than in the U.S.has already begun to close in that respect.An assistant chief economist with the RoyalWhen the mortgage rates went up, we didHe also noted that the slack in the economyBank of Canada says the economy is expectednot see the kind of deteriorating in sub-primeshould keep inflation rates low as well. He saidto grow for the next few years, but it will notmortgages in Canada as we did in the U.S., heinflation should only go up 1.7 per cent thisreach pre-recession levels in the near future.said.year and 1.9 per cent next year.Economist Paul Ferley spoke to a room fullHowever, there is a concern in Canada.* * *of local business leaders at the OakvilleFerley showed a graph depicting debt-to-The event also featured speaker Ray Kong,Chamber of Commerces RBC Economicincome levels in Canada and the U.S. The graphsenior vice president at Ipsos, a marketOutlook 2011 breakfast event Wednesday, Jan.shows debt has steadily risen in both countries,research company.26 at the Holiday Inn Oakville Centre.though in the U.S. much higher. However, inKong told the gathering following marketAn example of the economic growth is therecent months the U.S. debt levels have turnedtrends, though they can sometimes be a foolscurrent housing market.downwards while the Canadian line showed angame, are important to businesses.Paul FerleyHe said the market is expected to improve,ongoing upward trend. He said the debt couldWhy is paying attention to trends impor-but it will not reach pre-recession levels in thegrowth to continue. If that growth continueshinder the growth of the economy.tant? Wayne Gretzky was famous for saying innear future.south of the border it will pull the CanadianYou can see (the U.S. line) at the very endhockey you need to go to where the puck isThis is a reflection of the modest rebound-economy with it. So we very much want to seerecently the debt-to-income has actuallygoing, not where it is right now. Because busi-ing growth and also to some effect some of thethe expansion south of the border, he said.dropped below the Canadian debt, he said.nesses are hardwired not to change, its reallymortgage changes that have been introduced,He said there were several reasons why theThe economic recovery in Ontario is veryimportant to understand where consumers andhe told the gathering.Canadian economy did not take as great a hitmuch dependent on sustained U.S. growth,markets are going so that you can start today toHe also expects housing prices to remainas the U.S., such as the Bank of Canada dra-Ferley said, especially in the auto sector,build for the future.flat over the next two years.matically cutting interest rates, there being abecause Ontario exports autos to the U.S. TheHe said society has changed and consumersHe told the gathering that, though thelesser depreciation on capital costs in Canadarecession hit the U.S. auto market but it is noware now individuals. Businesses need to cater toCanadian economy did not take as great a hit asand commodity prices remained historicallyrising once again.the individualism in people, he said. As anit did in the States, its success is still dependenthigh.The upward trend needs to continue and inexample he mentioned adidas and Nike, whichon what occurs below the 49th parallel.He said high commodity costs have region-our view it will. That will go a long way in termsallow consumers to customize their own shoesHe said trends are improving in the U.S. andal implications. Its negative in Ontario becauseof the recovery being sustained, he said.on their website. Furthermore, adidas alsointernationally with banks beginning to lendof the high cost of gasoline, but on a nationalHe said by 2012 Canada is expected to haveoffers customers to change the colour of themoney again, the continuing of job growth, thebasis, because Canada exports oil, it is a boostan unemployment rate of seven per cent, anthree stripes in some of their shoes with slipsmarkets being less volatile. However, theto the national economy.improvement over the current 7.6 per cent.provided with the shoes.growth is only moderate.The demand comes from emergingHowever, he noted that though unemploymentHe said markets are becoming a reflectionThe bottom line is still, we want that U.S.economies. That demand held us relatively wellrates are similar to pre-recession levels, theof society, which is about individualism.Saturday February 26th6-9pm Classic BowlLovers LaneHave a HeartGather your friends and family to experience a night of bowling, oldfashioned fun, and laughter at Classic Bowl. Help us raise pledgesin support of St. John Ambulancevolunteer community services.Pledge or Register Onlinewww.sjacharitybowl.caA few of our proud Sponsors:Media Partners:Join us!Call St. John Ambulance 905-469-9325or visit www.sjacharitybowl.cafor more informationIts more than just a service, its a labour of love.-Sharon Cole, Fundraising Chair3 Thursday, January 27, 2011 OAKVILLE BEAVER www.oakvillebeaver.com