Canada Economic Forecast
April 30, 2018Canada’s economy stumbled at the outset of the year, contracting in January on an apparent one-off monthly decline in oil and gas output as unplanned maintenance took facilities offline. Moreover, full-quarter growth appears to have eased further on the heels of a downshift late last year as the economy dealt with short-term setbacks in both the housing market and the external sector. Housing metrics in March continued to signal uncertainty as the market dealt with new mortgage-lending rules. In the external sector, transportation bottlenecks early this year constrained exports and are likely to have dented growth in the first quarter. On the bright side, business confidence was generally upbeat in the quarter, and NAFTA appears increasingly likely to survive renegotiations.
Canada Economic GrowthDespite the slowdown since last year, economic fundamentals remain solid, and the economy should expand at a healthy pace this year. Tighter labor market dynamics should lift wages, but indebted households will still feel the pinch of higher interest rates. Moreover, heavier government spending and improved oil and gas exports are expected to lend support. Meanwhile, the Bank of Canada’s continued tightening could threaten to unwind the housing market and the recent comeback in business investment. Concerns around NAFTA, although somewhat alleviated, also still weigh on the outlook. Met the why particular panelists expect growth of 2.1% in 2018, down 0.1 percentage points from last month’s forecast, and 1.9% in 2019.
Canada Economy Data
5 years of Canada economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.52||1.00 %||May 17|
|Exchange Rate||1.28||0.15 %||May 21|
|Stock Market||16,162||0.23 %||May 18|
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Canada Economic News
May 18, 2018
Seasonally-adjusted consumer prices rose 0.1% from a month earlier in April, matching March’s 0.1% increase.
May 14, 2018
House prices inched up in April, with the Teranet-National Bank National Composite House Price Index rising 0.2% from a month earlier, following a flat print in March.
May 8, 2018
Housing starts on a seasonally-adjusted annualized (SAAR) basis moderated to 214,110 units in April, according to the Canada Mortgage and Housing Corporation (CMHC).
May 4, 2018
In April, the Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business, jumped 11.7 points to a multi-year high 71.5 points.
May 1, 2018
Canada’s economy rebounded in February following a one-off contraction at the outset of the year as facilities in the oil and gas sector got back online following unscheduled maintenance shutdowns.