OECD lowers growth outlook for Canadian economy
The Organization for Economic Co-operation and Development (OECD) has predicted a lower growth rate in Canada. From a 2 percent growth rate predicted earlier, the OECD now predicts a rate of only 1.4 percent.
|While the decline was the steepest of any in the countries looked at, it was still a better performance than that of France or even Germany. The OECD warned of significant risks to financial stability that extended across borders. It also pushed politicians to remove the burden of producing stimulus from central banks. While Canada's growth is behind that of the U.S. at 2 percent and the UK at 2.1 percent, it is still better than Italy or Japan, or as mentioned, France and Germany. The U.S. and Germany suffered downgrades of one half percentage point each. In 2017 Germany is now expected to grow by 1.7 percent and the US 2.2 percent in 2017. Canada's growth rate in 2015 was just 1.2 percent, so 2016 is still predicted to be slightly better. The CIBC had predicted Canada's growth at 1.3 percent this year close to the OECD estimate.|