Krishen Rangasamy, analyst at National Bank Financial, suggests that Canada’s overall GDP growth is likely to be restrained by domestic challenges, while it’s export sector will get a lift from a still-solid U.S. economy.
“The outlook for consumption spending has indeed become darker amid a very low household savings rate, high debt, rising interest rates, fading housing wealth effects, and a likely moderation of employment growth. And depending on commodity prices and global economic developments, business investment may also tread water, more so if reported excess capacity remains unutilized.”
“The federal government may yet come to the rescue with pre-election handouts although those are unlikely to be enough to prevent a sub-2% GDP growth print for 2019.”
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