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Canada’s economy to expand 1.4% this year

March 20, 2019

The Canadian economy will expand 1.4% in 2019, according to The Conference Board of Canada. A turnaround in business investment is required to push the economy to 2.0% growth next year, according to the Canadian Outlook: Spring 2019 Report.

“The weak growth that was evident at the end of 2018 is expected to persist into the first half of 2019,” said Matthew Stewart, director of economics at The Conference Board of Canada. “Despite this weak growth, there are reasons to be cautiously optimistic.”

Job gains and wage growth were strong at the beginning of the year, according to Stewart. In addition, the anticipated impact on investment from the measures contained in the federal government’s fall economic statement have yet to materialize.

Given the economic slowdown, the report expects the Bank of Canada will not hike rates until 2020 under the assumption that the economy improves as expected over the second half of this year.


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