After a strong second quarter, a sharp deceleration in export growth is set to pull GDP growth down from 1.5% this year to an even further below-potential 1.3% in 2020. We expect signs of slower growth to prompt the Bank of Canada to cut interest rates twice around the turn of this year. That monetary stimulus, combined with a modest loosening of fiscal policy, will help to push growth back up to 1.8% in 2021.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services