The bank has raised its global growth projection for next year to 3.8 per cent, one full percentage point higher than its previous estimate.

TD says a revival of the world trade will be good for Canada. It estimates Canadian exports will be up 25 per cent in the July to September quarter.

If that's the case, it will be the first time in two years that exports have contributed to Canada's economic growth.

Nevertheless, TD says the Canadian recovery from the worst recession in decades will be slow and gradual.

It says Canada's economy is expected to grow by 2.5 per cent next year after adjusting for inflation, slightly ahead of U.S. real GDP growth of 2.4 per cent.