Advertisement
Canada markets open in 4 hours 3 minutes
  • S&P/TSX

    22,107.08
    +194.56 (+0.89%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CAD/USD

    0.7347
    -0.0026 (-0.35%)
     
  • CRUDE OIL

    81.54
    +0.19 (+0.23%)
     
  • Bitcoin CAD

    96,203.10
    +1,218.23 (+1.28%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,215.50
    +2.80 (+0.13%)
     
  • RUSSELL 2000

    2,114.35
    +44.19 (+2.13%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • NASDAQ futures

    18,476.75
    -27.00 (-0.15%)
     
  • VOLATILITY

    12.96
    +0.18 (+1.41%)
     
  • FTSE

    7,959.41
    +27.43 (+0.35%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6814
    +0.0009 (+0.13%)
     

Canada’s GDP to flatline at 2 per cent or lower for more than a decade: report

Canada’s GDP to flatline at 2 per cent or lower for more than a decade
A pumpjack works at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016. (THE CANADIAN PRESS/Jeff McIntosh)

Canada’s economic growth is set to stagnate at a rate of two per cent or lower until 2030, causing its status among the world’s leading economies to tumble, according to a new report.

The data comes from the World Economic League Table 2017, published by U.K.-based think tank Global Construction Perspectives and the European research network the Centre for Economic Policy and Research, which provides forecasts and rankings for more than 180 countries.

The report predicts that the Canadian GDP will grow at a rate of 1.8 per cent from 2016 to 2020, with a slight uptick to 2 per cent growth between 2021 and 2030.

ADVERTISEMENT

According to a Financial Post story on the report, Canada’s growth will be held back by its public sector deficit, which has increased slightly this year to 2.5 per cent of the GDP, and its gross debt as a percentage of GDP, which is currently at 92 per cent.

On the opposite side of the coin, the country’s GDP growth will get a boost from low interest rates and a devalued loonie in comparison to the U.S. dollar.

The general consensus is that a GDP growth rate of 2.5 to 3.5 per cent has the best overall benefit for an economy.

The report estimates that Canada’s stalling growth will cause it to drop two spots in the rankings of the world’s largest economies to No. 12 by 2030 from its current position of tenth.

The analysis also pointed to Canada’s red-hot housing market as the greatest potential risk to its economic status.

This is a sentiment that was echoed by the country’s central bank earlier this month.