Canadian Outlook Bulletin: Autumn 2017
The Conference Board of Canada
September 20, 2017
This briefing provides highlights of our quarterly Canadian Outlook Economic Forecast report, which presents the short-term national outlook.
- The Canadian economy is on track to outperform most other developed economies by a sizable margin this year. However, the recent pace of growth is unsustainable.
- Strong employment has boosted consumer spending, but rising debt-servicing costs and easing house prices will drive a deceleration in spending growth over the second half of the year.
- Real business investment will post its first increase in three years in 2017. While the level of investment remains depressed, investment across all major subcomponents should continue to improve next year as capacity constraints tighten.
- Strong economic growth has led to an improvement in our outlook for government finances. The federal deficit for fiscal 2017–18 is now projected to come in at $22.7 billion.
- The Bank of Canada is set to continue to remove monetary stimulus, hiking rates again in October and twice in 2018.