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(June 20, 2008) The province of Quebec can expect its economic growth to slow to just 0.8% for the current year, before rising to 1.7% in 2009, according to Sébastien Lavoie, economist of Laurentian Bank Securities. That’s still below the long-term average of 2% between 2001 and 2007.

“The Quebec economy will continue to endure the effects of the U.S. economic slowdown,” LBS said in a release. “Chances are that economic growth in the U.S. will remain soft for quite some time as a result of the deterioration in the housing market, lower consumer confidence and tight credit conditions.”

The U.S. economy is expected to find its footing in 2010, which should boost Quebec’s growth to 2.3%.

Lavoie expects Ontario to struggle, however, as job losses in the auto sector will drag on the economy as a whole. His real GDP growth forecast for 2008 is a meagre 0.2%, rising to 1.4% in 2009.

With anticipated growth of 2.3%, Alberta will lose its lustre somewhat, as neighbouring Saskatchewan will serve up the strongest growth (3%) in the West, thanks to soaring prices for wheat, potash and uranium.

Manitoba will also benefit from rising agricultural prices, growing by 2.5% in 2008, while British Columbia should see the same result.

In Atlantic Canada, Newfoundland & Labrador’s growth will drop off, from 7.2% in 2007 to just 0.5% in 2008 and an even 1% in 2009. Prince Edward Island, Nova Scotia and New Brunswick will see growth capped at 1.1%, 1.4% and 1.9%, respectively.

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BMO expands presence in China

(June 20, 2008) BMO Financial Group has announced an expansion in China, launching a new fixed-term deposit product aimed at the retail market.

“As the first Canadian bank to receive a license for a full-service branch in Beijing in 1996, we are pleased to offer another first for our clients in China,” said Bill Downe, President and CEO, BMO Financial Group. “Our new investment product can help provide clients with predictable returns and security.”

The investment is available to Chinese citizens and expats, has a two-year maturity and requires a minimum deposit of $50,000 in either Canadian or U.S. funds, or $400,000 in Hong Kong dollars.

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Scotia gets foot in Indian door

(June 20, 2008) Scotiabank has made a pair of announcements further cementing its claim as “Canada’s most international bank,” teaming up with an Indian bank and entering the Peruvian pension market.

Scotia has reached an agreement to establish a relationship with HDFC Bank to offer services for Indian citizens immigrating to Canada and Canadian customers seeking accounts in India. The agreement still requires regulatory approval, but the bank says it expects to finalize the deal “shortly.”

“Through our relationship with HDFC Bank, we will be able to start a conversation with people coming to Canada before they leave home,” says Rania Llewellyn, vice-president of multicultural banking, Scotiabank. “For people who are in the process of moving halfway around the world, being able to establish an early banking relationship provides some stability in the midst of change.”

Scotia also announced that it has purchased a 47.5% stake in Profuturo, the fourth largest private pension fund in Peru, at a price of $33 million US.

Profuturo has about 23% of the country’s pension fund customers, representing 17% of the market’s revenues.

“Peru is a fantastic market with enormous potential. Today’s announcement is the latest in a series of Peruvian investments by Scotiabank and Scotiabank Peru, underlining our confidence in the Peruvian market and in the opportunities this market presents for our customers, our employees and our shareholders,” says Carlos Gonzalez Taboada, chairman of Scotia Peru Holdings.

(06/20/08)