Canada Economic Forecast
March 3, 2020The economy slowed in the final quarter of last year, restrained by a plethora of temporary setbacks. On the domestic front, fixed investment contracted at the sharpest pace in one year after surging in Q3, while the external sector further dragged on growth as exports contracted at the steepest pace since Q3 2017. On a brighter note, private consumption growth was stable in Q4, likely supported by upbeat wage growth and a tight labor market. Shifting to the first quarter of the year, economic activity will likely rebound due to a low base effect in Q4, but should remain soft as protests over the construction of the Coastal GasLink pipeline in B.C. led to the temporary shutdown of CN Rail’s operations across large parts of the country. Nevertheless, housing market data has been upbeat, while the unemployment rate ticked down in January and the manufacturing PMI rose in the same month—all of which bode well for domestic demand.
Canada Economic GrowthThe economy is seen expanding at a steady pace this year, with resilient private consumption and a stabilization in the energy sector supporting economic activity. Volatility in commodity prices, slower-than-expected growth in the U.S. and elevated household debt pose downside risks to the outlook, however. FocusEconomics analysts project growth of 1.6% in 2020, which is unchanged from last month’s forecast, and 1.8% in 2021.
Canada Economy Data
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|Bond Yield||1.70||1.00 %||Dec 31|
|Exchange Rate||1.30||0.15 %||Jan 01|
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Canada Economic News
March 27, 2020
On 27 March, the Canadian dollar (CAD) ended the day at 1.40 per USD, marking a 4.2% depreciation over the same day the month prior.
March 27, 2020
In recent weeks, the government has announced fiscal stimulus measures worth roughly CAD 227 billion (USD 162 billion) to support the economy as it reels from the fallout of Covid-19.
March 18, 2020
Consumer prices increased 0.1% from a month earlier on a seasonally-adjusted basis in February, virtually the same as January’s uptick.
March 18, 2020
House prices increased 0.4% on a month-on-month non-seasonally-adjusted basis in February, according to the Teranet-National Bank Composite House Price Index, stronger than January’s 0.1% uptick.
Canada: Bank of Canada cuts rates by 50 basis points for second time in March amid coronavirus anxiety
March 13, 2020
On 13 March, the Bank of Canada (BoC) held an unscheduled meeting and cut its target for the overnight rate from 1.25% to 0.75%, following its previous 50 basis-point cut on 4 March.