Canada Economic Forecast
August 28, 2018Output bounced back in May, putting the economy on track for a solid second quarter. Most sectors fired on all cylinders as one-off weather disruptions faded out, and all signs suggest that growth held up reasonably well through the first half of the year. Despite the slowdown in consumer spending seen since last year, low unemployment and robust wage gains have continued to underpin the domestic economy. Inflation grazed the upper bound of the Bank of Canada’s target band in July and core metrics hint that little slack remains in the economy. Moreover, the housing market appears to have finally stabilized after an uneven start to the year, and chipper business sentiment points to firm non-residential investment. Short-term downside risks still center on trade, although NAFTA renegotiations were resuscitated in mid-August when a handshake deal between Mexican and U.S. negotiators opened the door for three-way talks to resume.
Canada Economic GrowthHealthy economic fundamentals will underpin a solid outturn this year. Homegrown risks to the outlook appear to be fading as the housing market recovers and non-residential investment firms up. On the external front, although oil and gas exports are expected to lend support this year, the future of NAFTA remains uncertain. Met the why particular analysts expect growth of 2.1% in 2018, unchanged 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||2.43||1.00 %||Sep 21|
|Exchange Rate||1.30||0.15 %||Sep 24|
|Stock Market||16,207||0.23 %||Sep 24|
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Canada Economic News
September 12, 2018
House prices rose 0.2% on a monthly basis in August as the Teranet-National Bank National Composite House Price Index ticked higher, down from July’s 0.8% month-on-month increase.
September 8, 2018
Housing starts on a seasonally-adjusted annualized (SAAR) basis moderated to 201,000 units in August, according to the Canada Mortgage and Housing Corporation (CMHC).
September 7, 2018
In July, the Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business, held broadly stable, edging up marginally to 61.9 points (July: 61.8 points).
September 5, 2018
On 5 September, the Bank of Canada (BoC) held its target for the overnight at 1.50%, as widely expected by market analysts.
August 30, 2018
Economic momentum picked up in the second quarter, with seasonally-adjusted annualized (SAAR) growth accelerating 2.9% over the previous quarter.