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Abstract

Since the April Monetary Policy Report, three developments have led the Bank of Canada to make small modifications to its outlook for economic growth and inflation in Canada. First, economic growth in the first half of 2004 is now estimated to be somewhat higher than projected in April because of stronger foreign and final domestic demand for Canadian products. This, combined with a small upward revision to GDP data for 2003, implies somewhat less excess supply at mid-year than had been anticipated.

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