Canada: 2016 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, June 13, 2016
Source details
- Canonical URL
- Canada: 2016 Article IV Consultation-Press Release; and Staff Report
Other formats
Bibliographic details
- Published: June 13, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475530872.002
Recent economic developments and outlook
- After almost two years, the effects of the oil price shock continue to reverberate through the Canadian economy.
- Growth has decelerated, but inflation expectations remain well anchored.
- With the slowdown in growth, the output gap has reopened.
- Persistently low energy prices pose an important risk to the economy.
Financial sector assessment and vulnerabilities
- The banking system remains sound.
- Exposure to the oil and gas sector will require higher provisions against expected losses.
- Housing prices, mortgages, and growth of mortgage credit are identified as relevant subjects for the report.
Policy challenges and recommendations
- The policy mix over the near-term should cushion the adverse effects of lower oil prices on the economy while safeguarding financial stability.
- Monetary policy is characterized as accommodative in the keywords; exchange rate and financial asset developments are relevant considerations for policy.
Key subjects and keywords
- Subjects: Banking, Commodities, Financial institutions, Housing prices, Mortgages, Oil, Oil prices, Prices, Production, Productivity
- Keywords: accommodative monetary policy, Asia and Pacific, Canada's growth, Caribbean, consultation, CR, economy, exchange rate, financial asset, Global, growth of mortgage credit, Housing prices, ISCR, monetary policy, Mortgages, Oil, Oil prices, oil shock, Productivity