A resilient China, rising commodity prices and sturdy financial markets are offering a sunnier outlook for the global economy and helping dispel the gloom that has lingered since the Great Recession ended.
That’s the picture sketched by the International Monetary Fund (IMF), which predicts that the world economy will grow 3.5% this year, up from 3.1% in 2016. The IMF’s latest outlook for 2017 is a slight upgrade from the 3.4% global growth it had forecast in January.
The Washington-based organization continues to estimate Canada’s GDP will grow by 1.9% this year, unchanged from its previous forecast.
By contrast, the Bank of Canada projects the economy will expand by 2.6% this year, up from its previous estimate of 2.1% growth.
The central bank cautioned, however, that Canada’s economy might be unable to maintain the pace set in early 2017.
The Bank of Canada also lowered its estimate for next year to 1.9%, below the IMF forecast of 2.0%.
The IMF’s most recent world economic outlook provides little analysis of Canada’s performance but notes that it stands to benefit this year from improved commodity prices and a stronger outlook for the U.S.
The IMF expects the U.S. economy to grow 2.3%, up from 1.6% in 2016; the 19-country eurozone to expand 1.7%, the same as last year; Japan to grow 1.2%, up from 1%; and China to expand 6.6%, down from 6.7% in 2016.
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