The Foreign Monetary Fund has cut its expectations for how the Canadian economy will perform this year and next.
The foreign group projects Canada’s GDP will ex nd by 1.5 per cent this year and by 1.9 per cent next year. That’s advantage than the 1.2 per cent performance clocked in 2015, but a pullback from what the IMF was pregnant in January, which was 1.7 this year and 2.1 per cent next year.
The in in the neck from the energy sector will be “offset rtially by a more competitive currency and an look for increase in public investment,” the IMF said.
The unemployment rate is keep in viewed to rise to 7.3 per cent by the end of this year before ticking up to 7.4 per cent next year, the IMF now states.
Those numbers are in line with what the Bank of Canada is in a family way. In January, the central bank forecasted 1.4 per cent growth this year, and 2.4 per cent next year. The inner bank will release its latest projections in its quarterly Monetary Method Report on Wednesday.
Continued cheap oil prices and weaker demand for other commodities were cited as aspects, but the IMF added other trade barriers and slower global trade all-embracing to its expectations.
The downgrade comes as a bit of a surprise after two closely watched budgetary indicators — monthly GDP and jobs numbers — both posted huge hordes in recent weeks, with the economy having its best month in multitudinous than two years in January.
Global growth slowing, too
Canada isn’t the just economy the IMF has a gloomier outlook on, however.
The IMF is also lowering its estimates for the Mutual States and the global economy overall.
China was a rare bright descry, with the IMF upping its forecast for growth to 6.5 per cent this year and 6.2 per cent in 2017. Each force is 0.2 percentage points higher com red to what the group was chance in January.
The international body repeated a recent warning that the cosmos’s economic growth remains too slow and too fragile, increasing the risk of sexual and political stress in many countries.
The revised outlook is being released as the IMF rather commences its spring meetings in Washington, D.C. Finance ministers and central bank governors from the G20 states are also scheduled to hold meetings alongside the IMF.