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Canadian economy likely to expand 2.3 pct this year, exports and investment to drive growth

Through the early-2017, Canada’s economy continued to bolster; however, the sources of the accelerating growth of the nation are proving slightly different from the ones expected a few months ago, noted Scotiabank in a research report. In the hand-off from last year, the rising affordability concerns were expected to be a drag on housing and auto sales, while record consumer indebtedness and increasing interest rates would possibly hurt consumption growth.

These mild drags were expected to be countered by strengthening investment, rising non-energy exports, and follow-through on public infrastructure plans. However, housing, auto sales and consumption growth have not decelerated, whereas business capital spending and non-energy exports have not accelerated. Also, public-infrastructure spending is delayed, stated Scotiabank.

The main growth drivers of Canada’s economy continue to be the same and imbalanced. According to Scotiabank, the Canadian economy is expected to expand 2.3 percent this year, whereas it is likely to grow 2 percent next year. The sources of Canada’s GDP growth are projected to start shifting and diversifying in the year ahead, lowering the economy’s dependence on housing and consumption and increasing the contribution of exports and investment to growth, added Scotiabank.

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2017-10-17 15:31:17
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2017-10-17 15:30:41
0m

October 17 14:00 UTC Released

USNAHB Housing Market Indx*

Actual

68 %

Forecast

64 %

Previous

64 %

October 17 13:15 UTC Released

USManuf Output MM

Actual

0.1 %

Forecast

0.1 %

Previous

-0.3 %

October 17 20:00 UTC 184184m

USNet L-T Flows,Exswaps

Actual

Forecast

Previous

1.3 Bln USD

October 17 20:00 UTC 184184m

USOverall Net Capital Flows

Actual

Forecast

Previous

-7.3 Bln USD

October 17 20:00 UTC 184184m

USNet L-T Flows,Incl.Swaps

Actual

Forecast

Previous

-43.1 Bln USD

October 17 20:00 UTC 184184m

USForeign Buying, T-Bonds

Actual

Forecast

Previous

-0.5 Bln USD

October 17 21:00 UTC 244244m

KRExport Price Growth YY*

Actual

Forecast

Previous

10.7 %

October 17 21:00 UTC 244244m

KRImport Price Growth YY*

Actual

Forecast

Previous

9.0 %

October 17 23:00 UTC 364364m

KRUnemployment Rate*

Actual

Forecast

Previous

3.8 %

October 18 03:00 UTC 604604m

KRL-Money Supply Growth

Actual

Forecast

Previous

6.7 %

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