Ryan Lewenza: Canadian Growth Update

Canadian Growth Update

by Ryan Lewenza, CFA, CMT, Private Client Strategist, Raymond James

•  This week the Bank of Canada (BoC) provided its updated economic outlook with the release of the April Monetary Policy Report (MPR). Following better-than-expected economic activity in Q1/16, the BoC revised its growth forecast for the Canadian economy higher, with the BoC now forecasting 2016 real GDP growth of 1.7%, from its earlier estimate of 1.4%.

•  Recently we have seen an uptick in economic activity which led to the BoC upgrading their growth forecasts. This includes: 1) solid job gains in March; 2) stronger exports; and 3) a 0.6% M/M rise in GDP in March, the highest monthly gain since July 2013.

•  Despite the recent improvement in data, we continue to expect modest growth over the next few years. Central to this is our belief that the Canadian housing market is due for a correction, possibly beginning in 2017 as the BoC hikes rates, and that consumer spending will be constrained as a result of a hangover from the debt binge that Canadians have been on (see Chart of the Week).

Screen Shot 2016-04-18 at 9.08.23 AM

Read/Download the complete report below:

Weekly Trends April 15, 2016

Copyright Ā© Raymond James

Total
0
Shares
Previous Article

Never on a Friday

Next Article

MATTEL INC (MAT) NASDAQ - Apr 18, 2016

Related Posts
Read More

The silent majority: How 90% of ETF assets are proactively managed

The global exchange-traded funds (ETFs) market has rarely been more dynamic. Active strategies may be commanding the headlines, but index-based ETFs remain the bedrock of portfolios worldwide. And yet, misconceptions linger. Many still assume ā€œpassiveā€ means automatic and effortless. But is tracking an index really as effortless as it may seem? Dina Ting, Head of Global Index Portfolio Management, explains.
Subscribe to AdvisorAnalyst.com notifications
Watch. Listen. Read. Raise your average.