OECD lowers growth projections for Canada, U.S., other G7 countries

TORONTO -- The OECD has lowered its projections for Canadian, American and global economic growth over the next two years.

See Full Article

The Paris-based economics think-tank now estimates Canada's economy will grow by 1.4 per cent in 2016, slightly more than the 1.2 per cent estimated for 2015 but less than the OECD's previous estimate for this year of 2.0 per cent growth.

Canada's economic growth is expected to pick up to 2.2 per cent in 2017, but that would be 0.1 per cent less than previously thought.

The OECD also expects U.S. economic growth over the next two years will be slower than the 2.4 per cent estimate for 2015.

The Organization for Economic Co-operation and Development also lowered its outlook for global economic growth to 3.0 per cent in 2017 and 3.3 per cent in 2017 -- a decrease of 0.3 for both years.

It points to recent weak data from major economies including the United States and Canada as well as financial instability that's reflected in the fall of equity and bond prices worldwide.

"The world economy is likely to expand no faster in 2016 than in 2015, its slowest pace in five years. Trade and investment are weak. Sluggish demand is leading to low inflation and inadequate wage and employment growth," the OECD said.

"The downgrade in the global outlook since the previous economic outlook in November 2015 is broadly based, spread across both advanced and major emerging economies, with the largest impacts expected in the United States, the euro area and economies reliant on commodity exports, like Brazil and Canada."

The estimate for U.S. growth has been lowered by 0.5 to 2.0 per cent in 2016 and by 0.2 to 2.2 per cent in 2017. There were also downgrades for the other G7 countries -- Germany, France, Italy, Japan and the United Kingdom -- as well as Brazil.

The forecasts for China held steady at 6.5 per cent growth in 2016 and 6.2 per cent in 2017. India's growth estimate for 2016 was raised to 7.4 per cent, up 0.1, while the 2017 estimate was lowered to 7.3 per cent, down 0.1.



Advertisements

Latest Economic News

  • Barrick, Goldcorp joining forces to work on projects in Chile

    Economic CTV News
    TORONTO - Two of Canada's biggest gold companies are creating a new joint venture to advance several mining projects clustered in northern Chile. The joint venture will be owned equally by Toronto-based Barrick Gold Corp. Source
  • What makes a cyberattack? Experts lobby to restrict the term

    Economic CTV News
    LONDON -- When U.S. senator John McCain told Ukrainian television that the allegedly Russian-backed breach of the Democratic National Committee's server was "an act of war," Michael Schmitt cringed. Schmitt, a professor of law at the U.S. Source
  • CEO of International Air Transport Association criticizes electronics device ban

    Economic CTV News
    MONTREAL -- The head of the International Air Transport Association says it's difficult to understand how banning electronic devices in carry-on baggage on flights will improve security. In a prepared text of a speech Tuesday, IATA CEO Alexandre de Juniac called on governments to work with the transport industry to ensure passengers aren't separated from their laptops, tablets and other devices. Source
  • Former Valeant CEO suing company over unpaid shares

    Economic CBC News
    Former Valeant Pharmaceuticals CEO Michael Pearson is suing his former employer for breach of contract for failing to deliver more than three million shares and consulting fees. In a lawsuit filed Monday in the U.S., Pearson alleges that Valeant breached his separation agreement by refusing to hand over 580,676 restricted share units and about 2.4 million performance share awards he was granted. Source
  • Cruise line stops port calls at Mexican resort of Acapulco

    Economic CTV News
    MEXICO CITY - The U.S. cruise ship line Holland America says it has halted port calls at Mexico's troubled resort city of Acapulco and will sail to other destinations in the country "due to recent security concerns. Source
  • Home Capital shares dive after company terminates CEO

    Economic CBC News
    Shares of Home Capital Group Inc. traded down more than seven per cent on the TSX on Tuesday, a day after the company said it had terminated its top executive. Home Capital announced Monday after stock markets had closed that that Martin Reid, its president and CEO, was out, effective immediately. Source
  • Elon Musk's latest venture: Brain-computer interfaces

    Economic CTV News
    NEW YORK -- Tech billionaire Elon Musk is announcing a new venture called Neuralink focused on linking brains to computers. The company plans to develop brain implants that can treat neural disorders and may one day be powerful enough to put humanity on a more even footing with future superintelligent computers, according to a Wall Street Journal report citing unnamed sources. Source
  • Former Valeant CEO Michael Pearson sues for breach of contract

    Economic CTV News
    MONTREAL -- Former Valeant Pharmaceuticals CEO Michael Pearson is suing his former employer for breach of contract for failing to deliver more than three million shares and consulting fees. In a lawsuit filed Monday in the U.S. Source
  • Ford investing $1.2B in 3 Michigan plants, adding 130 jobs

    Economic CTV News
    DETROIT -- Ford Motor Co. is investing US$1.2 billion in three Michigan facilities, including an engine plant where it plans to add 130 jobs. U.S. President Donald Trump applauded the move in an early morning tweet. Source
  • Purolator stops accepting new shipments as strike deadline nears

    Economic CTV News
    TORONTO - Purolator stopped accepting shipments today ahead of a strike deadline this afternoon issued by the union representing some of the courier's employees. Teamsters Canada issued the 72-hour strike notice Sunday after its members voted to reject Purolator's final offer. Source