“Canada’s economy is heading for its worst non-recession showing in more than 50 years, Bank of Montreal warns.
But while the first half of 2015 was ugly, the rest of the year should show a pickup, BMO Nesbitt Burns said in a new forecast today.
We already know that the economy contracted at an annual pace of 0.6 per cent in the first three months of the year, and BMO now believes it shrank 1 per cent in the second quarter,” wrote Michael Babad for The Globe and Mail on Wednesday August 5, 2015.
Babad continued, “Mr. Guatieri predicts economic growth will perk up to about 2.5 per cent in the second half of the year, but that would bring the year’s total to a measly 1.2 per cent.
There are some bright spots: Exports showed a dramatic bounce in June, the oil shock will “at least abate,” and the government’s new child benefit tax scheme will put more money in the pockets of consumers.
On top of that is the pre-election spending “in the longest federal campaign since around Confederation.”
Housing markets are also strong, Mr. Guatieri said.
The Bank of Canada has already cut its benchmark rate twice this year, and is counting on a loonie-sparked rebound in exports.”
Read the full article here.
Raymond Matt, CFP, CLU, TEP, CHS
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