Canadian Outlook Executive Summary: Spring 2019 (WEB)
This quarterly economic forecast provides highlights of the Canadian Outlook report, which presents the short-term national outlook.
- The Canadian economy is projected to grow by just 1.4 per cent in 2019.
- Consumer spending slowed sharply at the end of last year, but strong income growth will support a rebound in spending this year.
- The housing market will continue to cool this year with a decline forecast in residential investment.
- Business investment outside of the resource and residential sectors is set to improve this year, but oil and gas investment will post its fifth consecutive annual decline.
- Given the economic slowdown, the Bank of Canada will remain on the sidelines this year. Rate hikes will return in 2020, assuming that the economy improves as expected over the second half of this year.
- A turnaround in business investment will be required to push the economy to 2.0 per cent growth next year.