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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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April 28 21:00 UTC Released

MXFiscal Balance (Pesos)*

Actual

340.61 bln MXN

Forecast

Previous

-1.93 bln MXN

April 28 21:00 UTC Released

CNFiscal Balance (Pesos)*

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340.61 bln MXN

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-1.93 bln MXN

April 30 01:00 UTC 569569m

CNNBS Non-Mfg PMI*

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55.10 %

April 30 01:00 UTC 569569m

CNNBS Manufacturing PMI*

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51.6 bln $

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51.8 bln $

April 30 23:30 UTC 19191919m

AUAIG Manufacturing Index

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57.5 %

May 1 00:00 UTC 19491949m

KRExport Growth Prelim*

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15.3 %

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13.6 %

May 1 00:00 UTC 19491949m

KRImport Growth Prelim*

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21.0 %

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27.7 %

May 1 00:00 UTC 19491949m

KRTrade Balance Prelim*

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Forecast

Previous

6.27 bln $

May 1 00:30 UTC 19791979m

USNikkei Mfg PMI

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Forecast

Previous

52.8 %

May 1 00:30 UTC 19791979m

JPNikkei Mfg PMI

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Forecast

Previous

52.8 bln $

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