Canada being dragged down by slowing global momentum: OECD
Economic prospects for Canada in line with most major economies in world
OTTAWA—The Organization for Economic Co-operation and Development (OECD) says leading indicators in Canada point to continued growth, but below the long-term trend for the country.
The economic prospects for Canada are in line with most major economies in the world, says the Paris-based international organization.
In its latest report, the OECD says most major economies face a continued loss of momentum in the coming quarters, which many blame for the Canadian economy’s recent lacklustre performance.
Canada suffered the worst trade deficit in recorded history in June.
Of the major economies, the OECD says growth is expected to pick up in only two countries—the United Kingdom and Brazil.
All others are characterized as undergoing a slowdown, moderating growth or continued weak growth.
The leading indicators index does not render a forecast on annual gross domestic product (GDP), but the description for Canada as facing moderating growth below trend suggests GDP advancing at or below two per cent in the next few quarters.
That would be slightly weaker than the Bank of Canada’s call in the June monetary policy report that pointed to growth picking up in the fourth quarter of this year and picking up speed through 2013.
The central bank has also recently taken to describing the economy as roughly in line with its production potential, or at trend growth.