Strong consumer spending will help drive the Canadian economy to growth of 2.2 per cent this year, the Conference Board of Canada said Monday.

Spending by consumers grew by an annualized rate of 7.4 per cent in the fourth quarter of last year, and the Canadians are expected to spend "liberally" this year as well, the research organization said. 

The Ottawa-based group said steady consumer confidence, easing interest rates and a stable housing market should help keep Canadians spending.

"Many Canadians seem undaunted by the slowdown south of the border," said Pedro Antunes, director of the Conference Board's national and provincial economic forecast

"Canada's domestic economy surged at the end of 2007 as consumers opened their wallets. Consumer spending has only matched this pace of growth once in the last 30 years, in the third quarter of 1985. As 2008 goes on, we expect that households will continue to spend strongly this year," Antues said.

The strong consumer consumption is expected to offset weak exports this year into the soft U.S. economy, the group said in its spring outlook.

The Conference Board's forecast is more optimistic than those being offered by economists at the major banks.

Last week, Royal Bank economists said Canada's GDP will rise by 1.6 per cent in 2008 as the trade sector slows and the U.S. economy weakens. In mid-March, TD Bank predicted economic growth this year would top out at 1.1 per cent.

In 2007, Canada's economy grew by 2.7 per cent.