Bank of Canada predicts GDP will grow by just 1.7% in 2019, and even that may be overly optimistic.
The Bank of Canada has slashed Canada’s economic growth projections for 2019.
They’ve cut .4 points from the expected rate of GDP growth, and are now predicting growth of 1.7% in 2019.
“The Bank projects real GDP will grow by 1.7 per cent in 2019, 0.4 percentage points slower than the October outlook. This revised forecast reflects a temporary slowing in the fourth quarter of 2018 and the first quarter of 2019. This will open up a modest amount of excess capacity, primarily in oil-producing regions. Nevertheless, indicators of demand should start to show renewed momentum in early 2019, leading to above-potential growth of 2.1 per cent in 2020.”
1.7% GDP growth is a very weak number, and it’s made even weaker when we take into account the immense immigration increases under the Trudeau Liberals. And talking about ‘above potential growth’ is absurd considering population growth.
With our population growing 1.4 in 2018, that means actual growth will be just .3%. And worse, most of that growth is concentrated among a small, well-connected elite. For most Canadians, life is getting more expensive and people are becoming poorer in real terms.
However, the Bank of Canada is likely being overly optimistic. After all, 2019 is the year in which Canadians will start feeling the full impact of the federal carbon tax, which will not only depress consumer spending and worsen debt woes, but will continue to send a signal that Canada is a bad place for investment compared to our neighbours to the south.
Combined with the fact that inflation is surpassing wage growth (and wage growth is weakening), 1.7% economic growth may be a projection that gets slashed and downgraded again.
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