Canadian Outlook Summary: Winter 2020
The Conference Board of Canada
December 17, 2019
This quarterly economic forecast provides highlights of the Canadian Outlook report, which presents the short-term national outlook.
- Real GDP is forecast to expand by 1.8 per cent in 2020 and 1.9 per cent in 2021. This is up slightly from 2019’s 1.7 per cent gain.
- Canada’s trade sector will continue to be challenged by weak global growth.
- Business investment has been dismal over the past few years. But prospects for energy investment are looking much more promising, thanks to improvements in energy takeaway capacity. And the outlook for the non-energy side remains moderate.
- Canada’s economy will be supported by strong labour markets and modest growth in consumer spending.
- While most provincial governments are expected to maintain a high degree of spending restraint as they work to balance their books, at the federal level the newly re-elected Liberal government is expected to increase spending and reduce taxes.
- With global economic conditions stabilizing, we think the Bank of Canada will make no changes to interest rates in 2020.