But the Conservatives took us to the top of the G7!
And income splitting!
IMF urges Canada to continue stimulus
The International Monetary Fund said Canada’s economy is “coping well” with the fallout from the oil shock, but cautioned that both fiscal and monetary policy should keep their foot on the gas as the fallout from oil’s collapse and, now, the devastating Alberta wildfires continue to cloud the country’s economic fortunes
“The Canadian economy and financial system overall are coping well,” considering the depth of the impact of the oil slump on business investment, said the IMF’s mission chief to Canada, Cheng Hoon Lim. The IMF estimated that oil-sector spending will decline about 30 per cent this year, on top of a 40-per-cent plunge in 2015 – about in line with the latest estimates from the Bank of Canada.
Ms. Lim made her remarks in a conference call with media, in conjunction with the international financial institution’s release of its report on its annual consultation with Canada. The report included new forecasts that the Canadian economy will grow by 1.75 per cent in 2016 and 2.25 per cent in 2017 – similar to the Bank of Canada’s most recent projections, issued last month, of 1.7 and 2.3 per cent, respectively.
The growth projections were produced before the Alberta wildfires that have forced mass evacuations and ground large portions of the province’s huge oil sands region to a halt. Some economists have offered quick estimates of how deep the impact will be on Canada’s economic growth; Royal Bank of Canada cut its second-quarter gross domestic product growth estimate to 1.5 per cent annualized, from 2 per cent, citing the fire impact on May’s economic activity alone.
But, Ms. Lim said, “I think it’s still a little early to have a definitive assessment” of the impact of the fires on Alberta’s and Canada’s economies. She added that any growth lost now could be offset by increased activity later in the year as the fire-affected region around Fort McMurray rebuilds from the disaster.
She also argued that added that if it turns out that the Alberta fires pose a deep and lasting hit to the economic outlook, “clearly there is room” in both Bank of Canada interest rates and in the federal government’s budget to provide additional economic stimulus.
Indeed, the IMF’s new report stresses that monetary policy “should stay accommodative” and fiscal policy “should be pro-growth” – advocating continued stimulation of the economy from both the central bank and the federal government. In both cases, the IMF indicated, Canadian policy makers have room for further stimulation “if downside risks materialize and the economy falters.”
IMF urges Canada to continue stimulus - The Globe and Mail
And income splitting!
IMF urges Canada to continue stimulus
The International Monetary Fund said Canada’s economy is “coping well” with the fallout from the oil shock, but cautioned that both fiscal and monetary policy should keep their foot on the gas as the fallout from oil’s collapse and, now, the devastating Alberta wildfires continue to cloud the country’s economic fortunes
“The Canadian economy and financial system overall are coping well,” considering the depth of the impact of the oil slump on business investment, said the IMF’s mission chief to Canada, Cheng Hoon Lim. The IMF estimated that oil-sector spending will decline about 30 per cent this year, on top of a 40-per-cent plunge in 2015 – about in line with the latest estimates from the Bank of Canada.
Ms. Lim made her remarks in a conference call with media, in conjunction with the international financial institution’s release of its report on its annual consultation with Canada. The report included new forecasts that the Canadian economy will grow by 1.75 per cent in 2016 and 2.25 per cent in 2017 – similar to the Bank of Canada’s most recent projections, issued last month, of 1.7 and 2.3 per cent, respectively.
The growth projections were produced before the Alberta wildfires that have forced mass evacuations and ground large portions of the province’s huge oil sands region to a halt. Some economists have offered quick estimates of how deep the impact will be on Canada’s economic growth; Royal Bank of Canada cut its second-quarter gross domestic product growth estimate to 1.5 per cent annualized, from 2 per cent, citing the fire impact on May’s economic activity alone.
But, Ms. Lim said, “I think it’s still a little early to have a definitive assessment” of the impact of the fires on Alberta’s and Canada’s economies. She added that any growth lost now could be offset by increased activity later in the year as the fire-affected region around Fort McMurray rebuilds from the disaster.
She also argued that added that if it turns out that the Alberta fires pose a deep and lasting hit to the economic outlook, “clearly there is room” in both Bank of Canada interest rates and in the federal government’s budget to provide additional economic stimulus.
Indeed, the IMF’s new report stresses that monetary policy “should stay accommodative” and fiscal policy “should be pro-growth” – advocating continued stimulation of the economy from both the central bank and the federal government. In both cases, the IMF indicated, Canadian policy makers have room for further stimulation “if downside risks materialize and the economy falters.”
IMF urges Canada to continue stimulus - The Globe and Mail
