OECD raises outlook for Canadian growth to 2.2% this year
By ASSOCIATED PRESSEconomy Industry Government Manufacturing Economy government manufacturing OECD protectionist tariffs
Watchdog says protectionism remains a key risk that would negatively affect confidence, investment and jobs.
OTTAWA — The Organization for Economic Co-operation and Development (OECD) is raising its economic forecast for Canada amid a strengthening global economy, but also warns that tensions are appearing that could threaten global growth.
The OECD says it now expects the Canadian economy to grow 2.2% this year, up from an earlier prediction of 2.1%.
It also raised its Canadian growth outlook for next year to 2% compared with its forecast in November for 1.9%.
The revised outlook compares with growth of 3% last year in Canada.
The Paris-based economic think-tank says trade protectionism remains a key risk that would negatively affect confidence, investment and jobs. As the US prepares to impose tariffs on steel and aluminum imports, a world economic watchdog is warning that such barriers will hurt economic growth globally.
In an update to its forecasts, it said that preserving “the rules-based international system is essential to prevent the longer-term harm to growth prospects that could arise from a retreat from open markets.”
The statement was a veiled reference to US President Donald Trump’s decision to impose tariffs without resorting to international arbitration.
The OECD expects world economic growth to accelerate to 4% this year and next, from 3.7% in 2017.