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Resurgent housing investment cannot be sustained

The recent strength in housing activity indicates that housing investment has made a resurgence and is still contributing strongly to GDP growth. Against a bleak global economic backdrop, this resurgence is unsettling, as it does not appear to be based on improved economic fundamentals. As such, this only reinforces our belief that the consensus view regarding Canada's GDP growth outlook for 2012 and 2013 is too optimistic.

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