(OTTAWA) The Conference Board of Canada has cut its economic growth forecast for this year and next as central banks around the world raise interest rates in a bid to stem soaring global warming. inflation.
Posted at 11:56
In its new two-year scenario, the think tank says it doesn’t expect an economic contraction in Canada, but says the risks are growing.
The Conference Board now expects Canadian economic growth to average 3.5% this year and 2.6% next year. That’s a downward revision from its earlier projections for growth of 4% in 2022 and 3.3% in 2023.
He says rising commodity prices are a lifeline for producers in Canada, but other sectors will have to contend with higher interest rates and slower growth in exports to the United States. United.
The Bank of Canada is expected to make its next rate announcement on Wednesday as it seeks to bring the annual inflation rate, which hit 7.7% in May, back to its target of 2%.
Many economists expect the central bank to raise its key rate by 0.75 percentage points.