China’s resilience, rising commodity prices, and sturdy financial markets provide sunnier outlook.
Part of global trend marked by slowing global oil exports, low crude prices and weak demand for commodities.
Pressure is on to meet growing demand for commodities.
Tumbling resource prices have cost $1,800 for every Canadian.
Primary driver will be the slump in commodities prices.
Reliance on commodity exports makes Canada vulnerable as Chinese demand for oil, metals and other raw materials falls.
Lower dollars absorbs some of the impact of lower commodity prices.
Alberta, Saskatchewan and Newfoundland-Labrador will be especially hard hit.
Economic expansion forecast reduced to 3% from 3.4%.
A 2% boost plus increased demand for commodities in China.
Country’s trade weakens and the government has clamped down on credit boom
But markets skittish following gold sell-off and softer Chinese GDP.
After weak employment report, rate hikes are likely further away than previously thought.
Public service layoffs and program cuts have already started as anxious workers wait for more bad news.
Cuts part of drive to save company $675 million.