TD/ Canada Trust Economic Highlights – May 20


United States

  • Eurozone GDP for Q1 sorely disappointed and has, alongside weak inflation figures across the currency bloc, prompted the ECB to in earnest consider additional stimulus come June.
  • Japanese GDP surprised to the upside in Q1, as consumers pulled forward consumption ahead of the tax hike, while an increase in business investment offers hope that momentum will not fizzle out in Q2.
  • U.S. economic data releases for April/May painted a picture of an accelerating economy, with inflation and housing appearing to have turned the corner.
  • GDP for Q1 looks likely to be revised down to a negative print, but Q2 growth is widely expected to come in well above 3%.


  • The pick-up in the spring housing market has been more modest than we anticipated. Canadian existing home sales rose 2.7% in April, but were still down 0.3% from year-ago levels and are below their 10-year average. Existing home prices continued to grow at a too-hot for comfort pace of 7.6% year-over-year.
  • Increased listings are likely to help bring more balance

For further information, please contact:

John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446