Canada: Staff Report for the 2007 Article IV Consultation
IMF Staff Country Reports, February 13, 2007
Source details
- Canonical URL
- Canada: Staff Report for the 2007 Article IV Consultation
Other formats
Bibliographic details
- Published: February 13, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451807028.002
Summary
- After surging in the first quarter of 2006, real GDP growth in Canada slowed subsequently, in part reflecting a cooling in the United States.
- Domestic demand remained the main driver of the economy.
- Private consumption expanded a robust 3¾ percent.
- Business investment grew 8 percent.
- Financial sector performance remained strong in 2006, largely reflecting continuing benign global market conditions.
- Long-term interest rates remained low despite monetary tightening.
- Spreads on private instruments remained low, reflecting default rates that continue to be low.
Economic activity
- Real GDP: surged in Q1 2006, then slowed subsequently.
- External influence: slowdown partly attributed to a cooling in the United States.
- Main domestic drivers: private consumption and business investment.
Domestic demand
- Private consumption: expanded 3¾ percent.
- Business investment: grew 8 percent.
- Domestic demand characterized as the main driver of economic performance in 2006.
Financial sector and interest rates
- Financial sector performance: remained strong in 2006.
- Global conditions: strength largely reflected continuing benign global market conditions.
- Interest rates: long-term interest rates remained low despite monetary tightening.
- Credit conditions: spreads on private instruments remained low, reflecting low default rates.
Content in this bundle
- _cr0751 — Executive Summary and Selected Findings