Citing a combination of weak oil prices, slackening growth in petroleum exports, and diminished demand for non-oil commodities, the IMF revised its predictions for Canada’s economic growth rate over the next two years, adjusting the values to 1.5 per cent in 2016 and 1.9 per cent in 2017.
The new estimates were a downgrade from the IMF’s numbers in January, which had slightly better prospects for the country’s economy at 1.7 per cent this year and 2.1 per cent next year.
To compare, private-sector estimates run at 1.4 per cent and 2.2 per cent for the next two years. Meanwhile, the Bank of Canada is looking at 1.4 per cent and 2.4 per cent over the same period.
These projections remain better than last year’s GDP growth rate of 1.2 per cent, perhaps signalling that Canada is already moving on from the worst effects of the oil shock.
As reported by the Financial Post
, the revised figures came along the IMF’s announcement of slower growth this year for the United States and the global economy as a whole, barring a healthy China which is expected to grow 6.5 per cent in 2016 and 6.2 per cent in 2017.
The IMF released its predictions as it starts its scheduled meetings in Washington, D.C., and ahead of its consultations with finance officials and representatives from G20 countries.