Credit cardsJeff J Mitchell
A new report says more business spending will help Canada's economy push ahead with further growth this year.
The report from CIBC World Markets says the federal government will shy away from spending and focus on cutting its own debt and reducing debt among Canadians.
The bank says policy makers will change rules and use higher rates to reduce the demand for mortgages and bring spending in line with income.
It expects economic growth to be just under two-and-a-half per cent.
The report says that the slower build-up of government and household debt will cut Canada's GDP growth this year.
But it adds that stronger exports in the U.S. and more business investment will lead to solid and more sustainable growth in Canada.