Canada Economic Forecast

Canada Economic Forecast

March 26, 2019

Economic growth in Q4 2018 significantly undershot analysts’ expectations. In seasonally-adjusted annualized terms (SAAR) domestic demand declined at the sharpest pace since 2015 as the contraction in fixed investment deepened and private consumption growth softened. Nevertheless, over 2018 as a whole, the economy performed relatively well thanks to a tight labor market and a strong external sector. Moving to Q1 2019, prospects look muted as oil production curtailments will likely dampen the energy sector, despite Alberta’s decision to ease its production cap. Moreover, the manufacturing PMI fell in January and February, while retail sales declined in January. On 19 March, the government unveiled the FY2019 budget, which aims to support first-time home buyers and middle-class workers. However, only a modest increase in spending is projected despite the upcoming election.

Canada Economic Growth

Economic growth will likely moderate further in 2019 amid a backdrop of slower global growth. That said, ratification of the USMCA should reduce uncertainty surrounding trade with the U.S. and, in turn, support mainstay export industries. Elevated household debt and global trade tensions pose downside risks to the outlook. Met the why particular analysts expect growth of 1.7% in 2019, down 0.1 percentage points from last month’s forecast, and 1.7% again in 2020.

Sample Report

5 years of Canada economic forecasts for more than 30 economic indicators.

Download

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Canada Facts

ValueChangeDate
Bond Yield1.721.00 %Apr 11
Exchange Rate1.330.15 %Apr 12
Stock Market16,4810.23 %Apr 12

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Canada Economic News

Search form