A new outlook from the Conference Board says Canada may avoid a recession next year, but it won't be pumping out strong growth and jobs.
The Ottawa-based think-tank says Canada will be weighed down by sub-par growth in the U.S. and the ongoing European debt crisis.
Canada's economy is expected to grow by only 2.1 per cent this year, with next year coming in a little stronger at 2.4, thanks to still-high global commodity prices.
The Conference Board was among the most gloomy of forecasters earlier this year and its predictions were mostly borne out by global events.
The think-tank says the U.S. will also likely avoid a recession because firms are flush with cash, commercial lending is growing again and industrial and export activity is on the rise.
But it cautions its no-slump prediction is based on expectations that European and U.S. policy-makers will implement pro-expansion policies.