11 April 2011
Canadian economic growth – recent IMF forecasts
Canadian economic growth forecasts were also revised. The IMF’s expectations for 2011 are down from 2.9% to 2.8%. In case of 2012, a more optimistic tendency is noted: the global lender has raised its forecasts from 2.3% to 2.6%.
According to its report, the strength of Canadian dollar turned out to be a drawback for the country’s growth pace. Other key risks include: a possible deterioration of real estate markets and high household debt level.
The IMF said Canada has made the right decision choosing sound regulatory policies. It actually helped to prevent the worst during financial crisis.
It also praised Canadian authorities for the development of “a credible plan to return to budget surpluses, starting in 2015”. In the same time, it noted that an aging population and increasing health care costs may require more effort to stabilize the country’s financial situation.