IMF hikes growth outlook for Canada, world

The International Monetary Fund is raising its estimate for economic growth in Canada this year. The international organization says it now projects Canada’s economy will grow 2.3% this year, up from an estimate of 2.1% in October. Growth for 2019 is forecast at 2%, up from an earlier projection for 1.7%. In its January monetary […]

By Staff, with files from The Canadian Press | January 22, 2018 | Last updated on January 22, 2018

1 min read

The International Monetary Fund is raising its estimate for economic growth in Canada this year.

The international organization says it now projects Canada’s economy will grow 2.3% this year, up from an estimate of 2.1% in October.

Growth for 2019 is forecast at 2%, up from an earlier projection for 1.7%.

In its January monetary policy report, the Bank of Canada raised GDP growth to 2.2% in 2018 and 1.6% in 2019, up from previous projections in October of 2.1% and 1.5%.

The IMF expects U.S. growth to accelerate to 2.7% this year, from 2.3% in 2017, citing increased investment as businesses take advantage of lower corporate tax rates.

Read: Canada, U.S. won’t drive global growth over next two years: Scotiabank

World output is expected to grow 3.9% this year and 3.9% in 2019, up two-tenths of a percentage point in both years.

Read: Look for value in Japan, emerging markets: deVere

The IMF says the revision for global growth reflects increased growth momentum and the expected impact of the U.S. tax policy changes.

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China reports 6.9% growth in 2017 on strong retail sales, exports