16 April 2013 15:42 [Source: ICIS news]
TORONTO (ICIS)--The International Monetary Fund (IMF) on Tuesday cut Canada’s 2013 GDP growth forecast to 1.5% as high household debt and continued moderation of the housing sector will restrain domestic demand, it said.
The IMF’s previous forecast, from January, was for 1.8% growth in Canada’s GDP this year.
The IMF said that the main challenge for Canada’s policymakers was to support growth in the short term while reducing vulnerabilities that may arise from external shocks and domestic imbalances.
“Risks around the baseline scenario [in Canada] remain tilted to the downside, in particular from adverse fiscal outcomes in the US, further turbulence in Europe, a decline in global commodity prices, and a less gradual unwinding of domestic imbalances,” it said.
Canada’s finance ministry has said it expects GDP growth of about 1.6% this year.
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