October 4, 2016 9:20 am
Updated: October 4, 2016 9:22 am

IMF cuts Canada’s economic outlook for this year, 2017

A dump truck works near the Syncrude oil sands extraction facility near the city of Fort McMurray, Alta., on June 1, 2014.

Jason Franson/The Canadian Press

WASHINGTON – The International Monetary Fund has lowered its estimates for Canadian growth in 2016 and 2017, pointing to a weaker U.S. economy than projected earlier this year.

The IMF is now forecasting Canada’s gross domestic product will grow by 1.2 per cent this year and 1.9 per cent next year.

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Both estimates are 0.2 percentage points lower than an IMF outlook issued in July.

Among other things, it says Canada has been negatively affected by unexpected weakness in the United States – the world’s largest economy and a major market for Canadian goods and services.

READ MORE: Canadian economy continues rebound, grows unexpected 0.5% in July

The IMF’s revised estimate for the U.S. economy has been lowered by 0.6 percentage points to 1.6 per cent. It’s also lowering the 2017 estimate for the United States by 0.3 percentage points to 2.2 per cent.

The Washington-based organization says the global economy faces subdued economic growth in the short and long term. But it left its estimate for world economic output unchanged at 3.1 per cent this year and 3.4 per cent next year

© 2016 The Canadian Press

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