Household debt overhang holding back Canada's economy
(Reuters) - Canada's economy will grow only modestly over the next two years and underperform the United States as high household debt levels and a cooling housing market restrain consumer spending, a Reuters poll found.
Economists lowered their forecast for annualized growth in the first quarter of this year to 1.7 percent from 2.2 percent in January's poll. Forecasts for the remaining quarters of this year and the first half of next year were nearly unchanged.
"We don't have much potential on the domestic side, at least in the near term, to move our economy at a rapid rate owing to elevated household debt and a cooling housing market," said Sal Guatieri, senior economist at BMO Capital Markets. Continued...
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Household debt overhang holding back Canada's economy | Business | Reuters
(Reuters) - Canada's economy will grow only modestly over the next two years and underperform the United States as high household debt levels and a cooling housing market restrain consumer spending, a Reuters poll found.
Economists lowered their forecast for annualized growth in the first quarter of this year to 1.7 percent from 2.2 percent in January's poll. Forecasts for the remaining quarters of this year and the first half of next year were nearly unchanged.
"We don't have much potential on the domestic side, at least in the near term, to move our economy at a rapid rate owing to elevated household debt and a cooling housing market," said Sal Guatieri, senior economist at BMO Capital Markets. Continued...
...more...
Household debt overhang holding back Canada's economy | Business | Reuters