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CIBC cuts 2013 forecast for Canadian economic growth to 'mediocre' 1.7 per cent

The Canadian Press

TORONTO - CIBC says Canada's economy will be weaker next year than previously expected and growth will be "very mediocre."

The bank (TSX:CM) cites a weak world economy and an absence of key economic drivers at home for the revision.

CIBC now expects economic growth of only 1.7 per cent in 2013, down from its previous forecast of two per cent.

CIBC chief economist Avery Shenfeld says Canada finds itself with limited means to set its own course, having already used government economic stimulus and a housing boom to offset global weakness.

As a result, he says Canada will have to rely on exports and related capital spending to boost the economy in the near term.

However, Shenfeld does expect things to pick up in 2014, with Canada's economic growth hitting 2.5 per cent, led by recovery south of the border and a strengthening Chinese economy.