Canada Economic Forecast
November 21, 2017This year’s sizzling and unsustainable growth appears to be tapering off. GDP contracted in August from a month earlier after recording flat growth in July, ending an eight-month stretch of gains in which the economy expanded at a pace not seen in decades. Although manufacturing took a hit in August, the Ivey PMI climbed through October to reach a 21-month high, suggesting that economic activity has since firmed up. Moreover, employment figures were healthy through October, and the unemployment rate hovered near a nine-year low. Canada’s property market, meanwhile, has taken a hit from new legislation and higher interest rates. With respect to trade, contentious talks continue between U.S., Canadian and Mexican negotiators regarding the future of NAFTA. Furthermore, during November’s APEC summit talks, the Canadian delegation stalled negotiations as it held out for changes to the new TPP-11 deal before agreeing to move forward with the pact.
Canada Economic GrowthEconomic growth is expected to continue moderating towards potential next year on slower household spending growth as higher interest rates and a cool-off in asset values weigh on heavily indebted consumers and dampen activity. Upbeat oil and gas exports are expected to support growth, although the possibility of a scrapped NAFTA will loom heavily on the external sector. FocusEconomics panelists expect GDP to grow 2.2% in 2018, which is up 0.1 percentage points from last month’s forecast, and 1.8% in 2019.
Canada Economy Data
5 years of Canada economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.90||1.00 %||Oct 18|
|Exchange Rate||1.28||0.15 %||Dec 06|
|Stock Market||15,909||0.23 %||Dec 06|
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Canada Economic News
November 17, 2017
Seasonally-adjusted consumer prices rose 0.2% in October, in line with September’s 0.2% print.
November 15, 2017
House prices continued walking back this year’s significant gains in October.
Canada: Trend in housing starts ticks back up in October as Vancouver groundbreaking strikes one-year high
November 8, 2017
Seasonally-adjusted annualized housing starts registered 222,800 units in October, according to the Canada Mortgage and Housing Corporation (CMHC).
November 6, 2017
In October, the manufacturing sector appeared to gain further momentum after initially heating up in September.
October 31, 2017
For the first time in ten months, GDP contracted in August, bringing an unexpected end to Canada’s most recent growth spurt.