Canada’s largest bank is forecasting the economy will do slightly better than most expect in the next two years, and one reason why is that the Canadian dollar won’t.

The Royal Bank is projecting growth rates of 1.8 per cent for 2013 and 2.9 per cent for 2014, which is a couple of decimal points better than the consensus estimate federal Finance Minister Jim Flaherty will be using in Thursday’s budget.

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