CANADA ECONOMY EXPECTED TO GROW MODERATELY Canadian economic growth is expected to slow further in 1987, but an improved the trade picture should keep the country from recession, economists said. "The economy is ready for about a 2.0 pct rate of growth over the course of 1987," said Carl Beigie, Chief Economist at Dominion Securities Pitfield Ltd. Statistics Canada reported that gross domestic product, grew 3.1 pct in 1986, the fourth year of continuous expansion, but down from 1985's four pct. In the final quarter, GDP, in 1981 prices and at annualized rates, rose a slight 0.2 pct after expanding 0.8 pct in the third quarter. "Essentially it is a flat performance," said Warren Jestin, deputy chief economist at the Bank of Nova Scotia. Economist Wendy Smith Cork of the brokerage Nesbitt Thomson Bongard Inc said "it shows the economy is not moving along very steadily, it's not a very promising number." "We weren't surprised, we expected to see one bad quarter in Canada, but we don't think there will be a recession," she added. The rise in GDP was below the 3.3 pct increase forecast by Federal Finance Minister Michael Wilson in his budget last month. He also projected the economy would expand 2.8 pct this year. Many economists are less optimistic, predicting growth will likely be in the 2.0 to 2.2 pct range. Statistics Canada also reported the country's trade performance deteriorated sharply last year as the deficit in the current account rose to a record 8.8 billion Canadian dlrs from the previous year's shortfall of 584 mln dlrs. "The sharp increase in the deficit originated from merchandise trade transactions where imports continued to advance strongly whereas exports were virtually unchanged," the federal agency said in a statement. The merchandise trade surplus was pared to 10.13 billion dlrs in 1986 from 17.48 billion dlrs in 1985. But economist Cork said the expected upturn in the U.S. economy will lead to increased demand for Canadian goods, and help fuel the country's modest expansion. Nearly 80 pct of Canada's exports are shipped to the U.S. each year.