{
  "title": "Canada: Staff Report for the 2014 Article IV Consultation",
  "publication": "IMF Staff Country Reports, January 30, 2015",
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  "summary": "KEY ISSUES Economic outlook: The Canadian economy has expanded at a solid pace since 2013, but rebalancing of growth away from household consumption and residential investment remains incomplete, owing mainly to weak business investment.",
  "sections": [
    {
      "heading": "Key issues — Economic outlook",
      "content": "- The Canadian economy \"has expanded at a solid pace since 2013,\" but \"rebalancing of growth away from household consumption and residential investment remains incomplete, owing mainly to weak business investment.\"\n- Growth momentum \"is expected to continue alongside a strengthening U.S. recovery despite substantially lower oil prices.\"\n- Risks to the outlook are \"modestly tilted to the downside\" given:\n  - \"sluggish global growth,\"\n  - \"effects unfolding from sharply lower oil prices,\"\n  - \"housing market risks.\"\n- \"Key domestic vulnerabilities in housing markets and the household sector remain elevated but contained from a financial stability perspective.\""
    },
    {
      "heading": "Policies for balanced and sustained recovery",
      "content": "- Overall objective: \"facilitate rebalancing to generate a broader and more durable recovery, reduce domestic vulnerabilities, and further strengthen financial system resilience.\"\n\n- Macro policies:\n  - \"Monetary policy can remain accommodative for now\" because:\n    - \"inflation expectations are well-anchored,\"\n    - \"stronger business investment is still a missing link,\"\n    - \"risks to an export-led recovery are to the downside,\"\n    - \"housing markets are expected to cool as U.S. interest rates rise and with lower oil prices.\"\n  - Fiscal policy guidance:\n    - \"Fiscal consolidation should proceed in light of longer-term challenges at the provincial level,\"\n    - \"but federal authorities should consider adopting a neutral stance going forward, using available fiscal resources for targeted measures to support growth.\"\n  - Structural policy guidance:\n    - \"Structural policies to improve productivity in the economy would increasingly need to complement this policy mix.\"\n\n- Housing sector and financial sector policies:\n  - \"Further macro-prudential policy action may be needed to guard against risks to financial stability if household balance sheet vulnerabilities resume rising.\"\n  - Continue \"reforms to limit government exposure to housing markets and encourage appropriate risk retention by the private sector.\"\n  - Strengthen coordination and frameworks:\n    - \"Improving complex coordination across federal and provincial authorities in supervision and stress-testing of depository institutions\"\n    - \"strengthening macro-prudential and crisis management frameworks will reinforce the resilience of Canada’s financial system.\""
    },
    {
      "heading": "Policy response to past advice",
      "content": "- Since \"the 2013 Article IV Consultation mission,\" authorities have:\n  - \"taken some further steps to limit taxpayer exposure to the housing sector and strengthen mortgage insurance underwriting practices.\"\n  - Begun work on FSAP recommendations to:\n    - \"enhance stress testing,\"\n    - \"address data gaps,\"\n    - move \"towards establishing a cooperative capital markets system.\"\n  - \"Intensified their efforts towards addressing interprovincial trade barriers and export diversification.\"\n\nSource: Canada: Staff Report for the 2014 Article IV Consultation\n\n---\n\n Content in this bundle\n\n- cr1522\n  - cr1522 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - cr1522 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: January 30, 2015",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781498396325.002",
    "The Canadian economy \"has expanded at a solid pace since 2013,\" but \"rebalancing of growth away from household consumption and residential investment remains incomplete, owing mainly to weak business investment.\"",
    "Growth momentum \"is expected to continue alongside a strengthening U.S. recovery despite substantially lower oil prices.\"",
    "Risks to the outlook are \"modestly tilted to the downside\" given:",
    "\"Key domestic vulnerabilities in housing markets and the household sector remain elevated but contained from a financial stability perspective.\"",
    "Overall objective: \"facilitate rebalancing to generate a broader and more durable recovery, reduce domestic vulnerabilities, and further strengthen financial system resilience.\"",
    "Macro policies:",
    "Housing sector and financial sector policies:",
    "Since \"the 2013 Article IV Consultation mission,\" authorities have:",
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