(CNW)  The Canadian economy will be hit by several speed bumps in the first two quarters of 2007, resulting in slower growth for the year as a whole and slightly higher unemployment, the Canadian Chamber of Commerce says in its annual Economic Review and Outlook.

The Canadian Chamber says Canada’s average annual real GDP growth will be 2.8 per cent in 2006 when all the numbers are counted, but that GDP growth will slow to 2.4 per cent in 2007.

There are several factors for the projected slowdown, but key is lower American demand for Canadian exports as a result of continuing economic weakness south of the border.

The chamber projects that the Canadian economy will limp home as 2006 concludes, struggling to reach two per cent growth in the final quarter. The weakness is anticipated to continue during the first half of 2007, before rebounding in the latter half of the year.
The forecast predicts:

-  The national unemployment rate is expected to be 6.4 percent in 2007, up from 6.3 percent in 2006.

-  The dollar will trade in a range of 86 cents and 89 cents (US) in 2007.

The report is available at www.chamber.ca.