Canada: Growth is expected to hit 3.1% during 2017 - Scotiabank

Analysts at Scotiabank suggest that Canadian growth is expected to hit 3.1% during 2017, more than double most estimates of the economy’s underlying potential this year, before slowing to 2.0% in 2018 and 1.5% in 2019 as tailwinds from busy Canadian consumers begin to wane.

Key Quotes

“Investment, industrial activity, and exports are beginning to bear more of the burden of growth, setting the stage for a more sustainable and balanced outlook.”

“Despite consistent year-on-year increases in debt, Canadian households have seen even stronger increases in asset values, which position them to weather progressively rising interest rates given their relatively high equity in their homes.”