Canada: 2017 Article IV Consultation-Press Release and Staff Report
IMF Staff Country Reports, July 13, 2017
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- Canada: 2017 Article IV Consultation-Press Release and Staff Report
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Bibliographic details
- Published: July 13, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484309605.002
Executive summary and outlook
- The Canadian economy has regained momentum, supported by the authorities’ pro-active growth strategy, but complex adjustments are still at play.
- Externally, the global outlook has improved, but uncertainty surrounding global trade and risks of economic fragmentation may negatively affect the durability of the Canadian recovery.
- A strong United States economy, expansionary fiscal and monetary policy, and stable oil prices are expected to lift real GDP growth to 2.5 percent in 2017 and 1.9 percent in 2018.
- Residential construction is expected to expand at a more moderate pace, reflecting tighter macroprudential measures.
Domestic demand and sectoral developments
- Personal consumption is robust.
- Business investment remains weak.
- Nonenergy exports have underperformed.
- Housing market imbalances have risen.
- Residential construction: expected to expand at a more moderate pace due to tighter macroprudential measures.
External environment and risks
- Improved global outlook supports Canada’s recovery.
- Key risks: uncertainty surrounding global trade and risks of economic fragmentation, which may negatively affect the durability of the recovery.
- External support factors: strong United States economy and stable oil prices.
Policy stance and implications
- Authorities’ pro-active growth strategy has supported the recovery.
- Expansionary fiscal and monetary policy are contributing to the projected growth outcomes.
- Macroprudential tightening is intended to moderate residential construction and address housing market imbalances.
Key statistics and projections
- Real GDP growth: 2.5 percent in 2017.
- Real GDP growth: 1.9 percent in 2018.
International Monetary Fund. Canada: 2017 Article IV Consultation-Press Release and Staff Report, July 13, 2017.
Content in this bundle
- Country Report