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Paltry growth numbers showed that Canada’s economy closed 2012 on a whimper

[np_storybar title=”As Washington frets, markets take $85-billion spending cuts in stride” link=”http://business.financialpost.com/2013/03/01/as-washington-frets-markets-take-85-billion-spending-cuts-in-stride/”]Broad spending cuts designed to slam most U.S. government programs were set to begin taking effect today, yet investors barely batted an eye. Find out more

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OTTAWA — Canada’s economy is facing a tough climb to reach any meaningful growth this year after recession-level growth in the last half of 2012.

Output slipped back into reverse last month but still managed to eke out a gain for the final quarter of 2012 and end the year with total growth of 1.8% — down from 2.6% a year earlier.

While last year’s growth was below the Bank of Canada’s estimate of 1.9%, it was slightly better than many economists has been expecting.

Still, 2013 is shaping up as another under-performing year, with the central bank calling for 2% growth, but private sector analysts are expecting a much weaker performance as the global economy faces continued threats from Europe and fiscal uncertainty in the United States.