Aging boomers seen long-term drag on Canada growth

* Conference Board sees robust medium-term GDP growth

* Demographics to restrain growth beyond 2014

TORONTO, April 28 (BestGrowthStock) – Canada’s economy will rebound
sharply in the next few years, pushing the unemployment rate
below 6 percent, but an aging population will hurt growth
beyond 2014, according to a report released on Wednesday.

The Conference Board of Canada forecast that real GDP
growth will average of 3.4 percent from 2012 to 2015 and said
the national unemployment rate is expected to fall below 6

Canada’s gross domestic product shrank 2.6 percent overall
in 2009 from 2008, hit by the grueling recession which followed
the global financial crisis. [ID:nN01244875]

The unemployment rate stood at 8.2 percent in March.

The non-profit research group warned that, after 2014,
economic growth will be restrained as the huge baby boom
generation makes its exit from the labor market.

“Labor shortages brought on by a wave of retirements will
be the dominant economic trend until about 2030,” Pedro
Antunes, director of the Conference Board’s national and
provincial outlook, said in a statement.

The research group said given the shift in demographics,
increased capital investment and improved productivity growth
would be needed to sustain economic performance.
(Reporting by Claire Sibonney, editing by Jeffrey Hodgson and
Rob Wilson)

Aging boomers seen long-term drag on Canada growth