Is Canada's economy grinding to a standstill?

We estimate that Canada's economy grew by roughly 0.5% annualised over the entire second half of last year and is likely to perform little better over the first half of this year. Trade competiveness challenges, lower Canadian oil prices and the beginning of a housing slump will continue to dampen growth. We think the upshot will be that policymakers will soon have no choice but to back peddle on fiscal consolidation and do away with talk about raising interest rates.