RBC sees 3.1 pct Canada growth; C$ hitting parity

* Royal Bank sees US$ worth 98 Canadian cents in Q2

* Sees 2010 Canada jobless rate averaging 8.4 percent

TORONTO, March 11 (Reuters) - Canada's economy is poised to grow by 3.1 percent this year, boosted by government stimulus, improved credit markets and a recovery in consumer spending, Royal Bank of Canada (RY.TO) forecast on Thursday.

Canada's largest lender also said it expects the Canadian dollar to soon trade at par with its U.S. counterpart, appreciating to 98 Canadian cents to the U.S. dollar in the second quarter, before weakening below parity again in the third quarter.

The Canadian dollar was at C$1.0306 to the U.S. dollar, or 97.03 U.S. cents, on Thursday.

CIBC issued a note on Wednesday forecasting that the Canadian dollar would appreciate to $1.02, or 98.04 Canadian cents to the U.S. dollar, by September, before falling below parity later in the year.

Royal Bank said auto sector stability and rising commodity prices should support a gradual improvement in Canada's job market, with the unemployment rate expected to average 8.4 percent in 2010 before falling to 7.7 percent in 2011.

Canada's unemployment rate CAUNR=ECI was 8.4 percent at the end of 2009 and declined to 8.3 percent in January. Jobs data for February is due out March 12. ECONCA

It forecast consumer spending would expand next year by 2.8 percent, matching 2010's pace, and that the economy would grow by 3.9 percent in 2011.

The country's robust housing market is also expected to help drive growth. The bank forecast housing starts of 184,000 in 2010, up from 149,000 last year.

Among Canadian provinces, the bank forecast Newfoundland and Labrador would have the fastest growth in 2010 at 4.1 percent, followed by Saskatchewan with 3.6 percent, and British Columbia with 3.4 percent. (Reporting by Jeffrey Hodgson; editing by Peter Galloway)