It says that growth will snap back following a weak second quarter, with low interest rates and federal stimulus easing the journey.
The report calls for a 3.7 per cent annualized GDP growth in the third quarter of 2016 and 1.9 per cent in the fourth. It sees a 1.8 per cent rise in GDP for 2017 following 1.3 per cent this year.
For the housing market, the outlook report highlights recent slowing of activity in BC largely due to policy changes impacting Vancouver, however it still expects a record year for the province.
Nationally, RBC expects the prices to end the year up 6.1 per cent as supply issues dominate but sales are expected to slip in 2017 with an overall decline of 3.5 per cent year-over-year.
More market update:
The Canadian economy will improve in the second half of 2016 with a further boost in 2017 according to RBC Economics.