IMF cuts Canada’s growth estimates for 2016, 2017 as part of global trend

The International Monetary Fund is lowering its economic growth projections for Canada and the world.

TORONTO — The International Monetary Fund is lowering its economic growth projections for Canada and the world.

Slowing growth in global oil exports, low crude prices and weak demand for non-oil commodities were identified as factors.

The IMF is now projecting Canada’s economy to grow by 1.5 per cent this year and by 1.9 per cent next year.

That would be an improvement on last year’s growth of 1.2 per cent but less than the IMF’s January estimate, which projected Canada’s economy would grow 1.7 per cent in 2016 and 2.1 per cent in 2017.

The IMF is also lowering its estimates for the United States and the global economy overall, with China being an exception.

It’s now estimating China’s economy will grow 6.5 per cent this year and 6.2 per cent in 2017, up 0.2 percentage points in each year from previous IMF forecasts.

The international body repeated a recent warning that the world’s economic growth remains too slow and too fragile, increasing the risk of social and political stress in many countries.

The revised outlook is being released as the IMF begins its spring meetings in Washington, D.C. Finance ministers and central bank governors from the G20 countries are also scheduled to hold meetings alongside the IMF.

In addition, the Bank of Canada will provide an update Wednesday on its key interest rate, currently at 0.5 per cent, and an assessment of the Canadian economy.

In January, the central bank estimated Canada’s economy would grow by 1.4 per cent in 2016 — down from its fall forecast of 2.0 per cent — and projected 2017 growth would be 2.4 per cent.

Finance Minister Bill Morneau’s first federal budget, released on March 22, uses a private-sector estimate of 1.4 per cent GDP growth in 2016 and 2.2 per cent in 2017.

Just Posted

Red Deer area businesses recognized at Business of the Year Awards night

“It’s an honour just to be nominated.” The popular words echoed throughout… Continue reading

Child sex offender should get 12 years: Crown prosecutor

Stuart Peter Hunt has pleaded guilty to 10 child sexual exploitation and pornography charges

Legalizing cannabis cost estimate for Red Deer just under $400k

Although the province of Alberta has announced $11.2 million for cannabis legalization,… Continue reading

WATCH: Every square tells a story: Edmonton expert is exploring Red Deer’s quilting history

Community members can bring in family heirloom quilts for documentation

WATCH: Two weeks away from Canadian Finals Rodeo in Red Deer

In just two weeks, Ponoka’s Shayna Weir will compete with the best… Continue reading

Film with Fan Bingbing, Bruce Willis cancelled after tax case

BEIJING — The director of “Air Strike,” featuring Chinese actress Fan Bingbing,… Continue reading

Michael Buble shuts down rumours of retirement from music

LOS ANGELES — Michael Buble is shutting down rumours that he’s going… Continue reading

After Canada legalizes pot, industry eyes rest of the world

MONTREAL — Cam Battley is a top executive at one of Canada’s… Continue reading

Facebook’s election ‘war room’ takes aim at fake information

MENLO PARK, Calif. — In an otherwise innocuous part of Facebook’s expansive… Continue reading

Military to overhaul morale-boosting trips after review finds serious problems

OTTAWA — Canada’s top general is overhauling military morale-boosting tours after an… Continue reading

Police hand out a few hefty fines for allegedly violating Cannabis Act

The celebratory mood that marked the legalization of recreational cannabis lost a… Continue reading

PHOTO: Say goodbye to City Hall Park flowers

A sure sign that winter is on its way is when City… Continue reading

PHOTO: Chew On This! campaign draws attention to national poverty

Lunch bags were being handed out in front of The Hub downtown… Continue reading

Most Read