CIBC World Markets says it thinks Canada will have a stronger economic rebound next year than the United States and other Group of Seven countries because of the ability of Canadian households to take advantage of low interest rates.

The bank-owned investment firm says in a new analysis that Canada's economy will be slow to recover, with its gross economic product rising in 2010 by only two per cent over this year's weak performance, after adjusting for inflation.

But CIBC says Canada's growth next year will be half a percentage point higher than what's projected for the United States and more than double the growth of the European countries that use the euro currency.

CIBC is also projecting the Canadian economy will grow by 3.8 per cent in 2011.

The analysis say Ottawa's $40 billion of stimulus spending will help the Canadian economy, particularly in the second half of 2009 and throughout 2010, but that the resiliency of household spending is key to the country's outperformance.

It says that despite high unemployment, Canadian consumers are in better shape to take advantage of low interest rates than their peers in the United States, where the housing and banking sectors have undergone a bigger crisis.