The International Monetary Fund has cut its outlook for Canada’s economy, which has been hit by wildfires in the oil patch, among other things.
Bringing its forecasts more into line with other such outlooks, the IMF now projects economic growth of 1.2 per cent this year and 1.9 per cent in 2017.
In each case, the outlook has been trimmed by 0.2 of a percentage point from its July projections.
Economic growth in Canada, the IMF said Tuesday in its world economic outlook, will be “held back by the severe impact of wildfires in Alberta on oil output in the second quarter.”
There are other factors, of course, such as a weaker-than-expected showing in the United States, which is “compounding the setbacks” from one-time issues such as the wildfires.
“Canada’s oil production is strong, but new investment in oil sand fields is limited,” the IMF added.
The IMF also noted the projected impact of fiscal stimulus around the world, to the tune of over a percentage point in Canada.
Globally, the IMF maintained its weak forecast for growth and warned that further stagnation will fuel more populist sentiment against trade and immigration that would stifle activity, productivity and innovation.
