Shipping containers are seen at the Fairview Cove Container Terminal in in Halifax on Friday, Aug. 25, 2017. The Organization for Economic Co-operation and Development has upgraded its outlook for Canadian economic growth for this year. THE CANADIAN PRESS/Andrew Vaughan

OECD raises outlook for Canadian economic growth this year

OECD raises outlook for Canadian economic growth this year

OTTAWA — Canada’s economy could be in for a significant rebound this year, according to an upgraded outlook from the Organization for Economic Co-operation and Development.

In a report released Monday, the Paris-based think tank also known as the OECD, said it now expects the Canadian economy to grow by 6.1 per cent in 2021. The prediction is up from an estimate for growth of 4.7 per cent that the OECD made in March.

The rebound will be thanks to reduced COVID-19 restrictions in the second half of the year and external demand, the think tank said.

Higher prices for commodities like oil and the projected increases in demand resulting from the U.S. fiscal package in March are also behind the boost in the country’s economic recovery.

The back half of 2021 could also see increases in consumer spending and improvements to the labour market as public health measures are lifted once the latest waves of COVID-19 die down.

The pandemic will continue to pose a risk to the pace of economic recovery, however, as more contractible variants of the disease continue to circulate and force jurisdictions in the country to enact additional health measures, the OECD added.

But the federal government’s recent budget indicated it may keep some of the supports given to households and businesses in place until the country is on the other side of the global health crisis.

The OECD said growth in Canada for 2022 is forecasted at 3.8 per cent compared with a March estimate of four per cent.

The revised outlook for Canada came as the OECD forecast global output would rise 5.8 per cent this year, up from its forecast of 4.8 per cent in December. Like Canada, this increase is attributed to the vaccine rollout in advanced economies across the world and the fiscal stimulus from the United States.

Other data from the think tank projects that Canada can expect to return to pre-pandemic gross domestic product per capita by the second quarter of 2022.

Statistics Canada is expected to release Canadian GDP figures for the first quarter on Tuesday.

This report by The Canadian Press was first published May 31, 2021.

———

This story was produced with the financial assistance of the Facebook and Canadian Press News Fellowship.

The Canadian Press

economy

Just Posted

The Sylvan Lake Gulls celebrate a sixth inning home run from Nolan Weger on Sunday during a game against the Edmonton Prospects. (Photo by BYRON HACKETT/Advocate Staff)
Historic opening weekend for Sylvan Lake Gulls

It wasn’t perfect, but perhaps that was the beauty of it. Fans… Continue reading

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Alberta reports 100 new cases of COVID-19

The Central zone sits at 218 active cases

Three Hills RCMP recovered stolen copper wire during recent investigation near Kneehill. (File photo by Advocate staff)
Fatal ATV rollover near Innisfail Saturday

A 77-year-old man from Red Deer County died Saturday after an ATV… Continue reading

Firefighters and emergency services workers helped celebrate Barry Young’s 85th birthday at Timberstone Mews on May 29. (Photo by Sean McIntosh/Advocate staff)
Firefighters in central Alberta make birthdays special

A fire truck arriving outside your house is not normally good news.… Continue reading

A view of Two Jack Lake in Banff National Park is shown in this undated handout photo. More Canadians are expected to leave their passports at home this summer and hit the road in Canada as the weak loonie and low gas prices prompt a deeper exploration of their own country. THE CANADIAN PRESS/HO - Travel Alberta *MANDATORY CREDIT*
Report: Alberta losing residents to other parts of Canada

As the COVID-19 pandemic slowly winds down in Alberta, residents are continuing… Continue reading

A large number of supporters were out Saturday at a rally intended to bring awareness about including Hinduism in the grade 2 portion of the K-6 draft curriculum. As it stands now, Hinduism won’t be taught until grade 6 in the proposed draft curriculum. (Photo by BYRON HACKETT/Advocate Staff)
Video: Rally to support adding Hinduism to draft curriculum draws crowd in Red Deer

The Hindu community in Red Deer came out in droves on Saturday… Continue reading

Orange shirts, shoes, flowers and messages are displayed on the steps outside the legislature in Victoria, B.C., on Tuesday, June 8, 2021 following a ceremony hosted by the Songhees and Esquimalt First Nations in honour of the 215 residential school children whose remains have been discovered buried near the facility in Kamloops, B.C. THE CANADIAN PRESS/Chad Hipolito
Alberta city cancels Canada Day fireworks at site of former residential school

City of St. Albert says that the are where the display was planned, is the site of the former Youville Residential School

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

Germany's Robin Gosens, left, celebrates Germany's Mats Hummels after scoring his side's fourth goal during the Euro 2020 soccer championship group F match between Portugal and Germany at the football arena stadium in Munich, Saturday, June 19, 2021. (Matthias Hangst/Pool Photo via AP)
Germany clicks at Euro 2020 with 4-2 win over Portugal

MUNICH (AP) — Germany finally clicked into gear at the European Championship,… Continue reading

Fans cheer on their team during the pre-game warmup of Game 3 of the NHL Stanley Cup semifinal with the Montreal Canadiens facing the Vegas Golden Knights, in Montreal, Friday, June 18, 2021. THE CANADIAN PRESS/Paul Chiasson
COVID-19 concerns give way to Habs Fever in Quebec as Montreal continues playoff run

MONTREAL — The sun hadn’t yet risen in Montreal on Friday morning… Continue reading

Coronavirus cases are on the rise from India to South Africa and Mexico, in a May 19, 2020 story. (Photo by THE ASSOCIATED PRESS)
As Brazil tops 500,000 deaths, protests against president

RIO DE JANEIRO (AP) — Anti-government protesters took to the streets in… Continue reading

A black bear cub forages for food along a salmon stream below a bear viewing spot for tourists in the Mendenhall Glacier Recreation Area in Juneau, Alaska.  (File photo by THE ASSOCIATED PRESS)
Bandit responsible for vehicle break-ins is a black bear

THORNTON, N.H. (AP) — Surveillance video helped police get to the bottom… Continue reading

FILE - In this April 25, 2019 file photo, Editor Rick Hutzell, center, gives a speech to his staff including Chase Cook, Nicki Catterlin, Rachael Pacella, Selene San Felice and Danielle Ohl at the Capital Gazette in Annapolis, Md. The editor of the Capital Gazette, which won a special Pulitzer Prize citation for its coverage and courage in the face of a massacre in its newsroom, is leaving the Maryland newspaper. Hutzell, who worked at the Annapolis paper for more than three decades, authored a farewell column that was published on the paper's website Saturday, June 19, 2021. (Ulysses Muoz/The Baltimore Sun via AP)
Editor of paper that endured newsroom shooting says goodbye

ANNAPOLIS, Md. (AP) — The editor of the Capital Gazette, which won… Continue reading

Most Read