The Canadian economy grew at a blistering pace in 2000 but analysts warned Wednesday that slower growth in the last quarter, while far better than in the United Slates, heralds harder times ahead.

Statistics Canada said gross domestic product, a broad measurement of economic output, rose at a strong 4.7 per cent in 2000 to match 1999’s growth rale.

But (Ire good news was clouded by the annualised 2.6 per cent grow th rate in the fourth quarter-below the 3.1 per cent expected by analysts, although far above (he revised fourth-quarter figure of 1.1 per cent in the United States.

“The overall picture is good. The economy grew al a very, very good pace, although it slowed down in the fourth quarter," said Marc Levesque, senior economist at Toronto-Dominion bank.

"All in all. it suggests the slowdown in the US is starting to spill across (he border. The bottom line is that this is going to significantly increase lire chance (hat the Bank of Canada is going to cut (interest rates) by 50 basis points next week," Ire said.

Canada's central hank, which has forecast growth in 2001 of i around 3 per ceni. will announce ■ the ciRirse ol interest tales on I ' March 6. It is widely expei n d n>

1 . cut rales by at least 25 basis points

M to manage the current slowdown.