The Financial Post reports in its Tuesday, Sept. 30, edition that Deloitte Canada forecasts that the Canadian economy will avoid a technical recession and return to low growth in the third quarter. The Post's Jordan Gowling writes that the report said, "We expect the economy to limp along in the third quarter but now think that a technical recession can be avoided with growth rates running below potential but still on the positive side of the ledger." The latest outlook revises Canada's GDP, now forecasting a positive 1.2-per-cent growth in the third quarter, a change from the previous April forecast which predicted a contraction of 1.1 per cent in the first quarter and 0.9 per cent in the third quarter. Looking to next year, the report forecasts growth will improve, with the Canadian economy set to grow by 1.7 per cent. This is thanks to an improvement in business confidence going into next year. "We do expect business confidence to improve," said Deloitte Canada economist Dawn Desjardins. She expects the labour market to hold, with no substantial layoffs outside of trade-impacted sectors. This could help a slow recovery for the Canadian housing market. She said, "We don't see employment falling off a cliff."