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Geoff Zochodne<\/span> <\/div><\/div>\n<\/picture>BMO\u2019s CEO sees a build-up in consumer demand that could be unleashed when the pandemic ends.\u00a0<\/span> Photo by Peter Summers\/Getty Images files<\/span> <\/figcaption><\/figure>\n<\/div>\n\n
Article content<\/h2>\n The chief executive of Bank of Montreal says they see a rip-roaring recovery this year for both the economies of the United States and Canada, with the lender\u2019s latest forecast improving over earlier calls.\u00a0<\/span><\/p>\n\u201cAs the key areas of the economy reopen, we expect a release of pent-up demand, sparking real growth,\u201d BMO CEO Darryl White said Wednesday in a speech at the bank\u2019s annual meeting. \u201cIn the U.S., we\u2019re forecasting GDP growth of 6.5 per cent this year, the strongest advance since the mid-1980s, and we\u2019re projecting the same rate for Canada.\u201d\u00a0<\/span><\/p>\nBMO\u2019s outlook shows it has grown increasingly optimistic about the Canadian and U.S. economies this year, even as the COVID-19 pandemic continues and Canada\u2019s vaccination efforts have lagged its neighbour to the south.\u00a0<\/span><\/p>\nThe bank\u2019s first-quarter report to shareholders predicted Canadian economic growth of five per cent this year, after an estimated contraction of 5.4 per cent in 2020. Growth of U.S. real gross domestic product was forecast to be six per cent in 2021, the fastest since 1984, following a 3.5 per cent dip in 2020.\u00a0<\/span><\/p>\n<\/p><\/div>\n\n
Article content<\/h2>\n BMO\u2019s economics unit has since hiked its forecast for growth, saying earlier this month that while its global outlook has \u201cbarely budged\u201d in the past three months, there have been some underlying changes.\u00a0<\/span><\/p>\n\u201cBy far and away, the largest upgrade was to the U.S. outlook, due mostly to the aggressive fiscal push, but also due to signs of a faster reopening of the economy alongside a rapid vaccine roll-out,\u201d BMO chief economist Doug Porter wrote on April 1. \u201cCanada has been pulled along for the ride, and we look for a similar growth rate here.\u201d<\/p>\n
Porter had also noted in March that the Canadian economy hasn\u2019t posted growth of more than six per cent since 1974.<\/p>\n
White on Wednesday said that the world will be dealing with the effects of COVID-19 for some time still. However, he also said there are \u201cmore hopeful signs\u201d being spotted every day. T<\/span>he <\/span>BMO CEO is also not alone<\/span> in seeing a build-up in consumer demand that could be unleashed when the pandemic ends.\u00a0<\/span><\/p>\n<\/p>\n\n TD Bank CEO pushes for policies to spur cash-flush consumers to spend locally <\/span><\/h3>\n<\/li>\n The pandemic exposed flaws in Canada\u2019s economic system. Fixing them won\u2019t be easy <\/span><\/h3>\n<\/li>\n The way things are going, the loonie could be a market favourite for the whole year <\/span><\/h3>\n<\/li>\n Mounting debt \u2018worrying\u2019 as Canadians stretch to chase rising home prices, says Bank of Canada governor <\/span><\/h3>\n<\/li>\n<\/ol>\n<\/section>\n\u201cThe ultimate goal is a return to normal life, reuniting with family and friends, children back at school, reopening of small businesses, the freedom to travel again, or simply to go out for dinner,\u201d he told the bank\u2019s shareholders.<\/span><\/p>\nYet White said recovery does not necessarily mean restoring the status quo, and he predicted the rebound would be an uneven one as well.<\/span><\/p>\n\u201cThat\u2019s why we\u2019re tailoring BMO\u2019s products and services to help every customer regain momentum and resume progress,\u201d he said. \u201cBecause our bank is only as strong as the customers and the communities we serve.\u201d<\/p>\n
Financial Post<\/em><\/p>\n\u2022 Email: gzochodne@postmedia.com | Twitter: