Canadian Manufacturing

Canada’s growth forecast cut by OECD

Report cites the drag caused by lower prices for oil and other commodities



PARIS—The OECD has reduced its 2015 and 2016 economic growth forecasts for Canada, citing the drag caused by lower prices for oil and other commodities.

The Paris-based organization is now estimating Canada’s economy will grow by to 2.2 per cent this year, 0.4 less than previously thought.

Next year’s forecast has been trimmed to 2.1 per cent, down 0.3 since the November forecast.

The OECD says Canada is among the countries that has been affected by the sharp decline in oil and commodity prices.

It says other countries are less affected by the sharp drop in oil prices to six-year lows.

The OECD is keeping its forecast for the United States growth unchanged at 3.1 per cent in 2015 and 3.0 per cent in 2016.

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