Canada Economic Forecast
September 27, 2016The economy is expected to have rebounded in Q3 after GDP fell 1.6% in Q2, which marked the worst performance since the height of the global financial crisis in 2009. The bleak figure was a result of the wildfires that disrupted oil production and forced the evacuation of Fort McMurray—Canada’s oil sands’ hub. Although domestic demand remained resilient, with total consumption increasing robustly in Q2, it could not compensate for the massive decline in energy exports. In fact, Statistics Canada stated that the economy grew 0.1% over the previous quarter, if the impact of the drop in oil output is excluded. Meanwhile, the PMI fell considerably in August, although the index still indicates expansion in the manufacturing sector. On a positive note, the housing sector remains robust. Housing prices grew 1.5% in August over the previous month, driving the price index to a record high.
Canada Economy Data
5 years of Canada economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.17||-2.50 %||Oct 20|
|Exchange Rate||1.33||0.78 %||Oct 21|
|Stock Market||14,939||0.61 %||Oct 21|
Canada Economic Growth
September 27, 2016The recovery in the oil industry and rebuilding efforts in Fort McMurray are expected to have fueled activity in Q3. The economy should also be supported in the final quarter of the year by the federal government’s new Canada Child Benefit program and higher infrastructure spending. FocusEconomics panelists expect GDP to increase 1.2% in 2016, which is down 0.1 percentage points from last month’s forecast. For 2017, the panel sees GDP growth rising to 2.0%.
Canada Economic News
October 21, 2016
In September, seasonally-adjusted consumer prices increased 0.2% from the previous month, which contrasted the 0.1% decrease recorded in August and marked the highest print in three months.
October 19, 2016
At its 19 October policy meeting, the Bank of Canada (BoC) decided to maintain its target for the overnight rate at 0.50%, despite a weaker inflation and growth outlook.
October 11, 2016
The Teranet-National Bank National Composite House Price index rose 0.7% in September from the previous month, which followed the 1.5% increase in August.
October 8, 2016
Seasonally-adjusted annualized housing starts registered 220,600 units in September, according to the government-owned Canada Mortgage and Housing Corporation (CMHC).
October 7, 2016
The Ivey Purchasing Managers’ Index (PMI), sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, increased a seasonally-adjusted 6.1 points in September, rising from 52.3 in August to 58.4.