TD Bank trimmed its outlook for the Canadian economy as it predicted low oil prices will take a larger bite out of the first quarter, before the economy picks up in the second half of the year.

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The bank cut its growth forecast for the first quarter to an annual pace of 0.5%, compared with its outlook in January when it predicted an annual pace of 1% for the first three months of the year.

The forecast falls well short of the 1.5% pace the BoC has predicted for the first quarter.

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TD is also now estimating 1.9% growth for this year, compared with its earlier forecast for 2%. Its forecast for 2016 is unchanged at 2.2% growth.

The new estimate is based on a slightly higher average price for oil this year at US$49 per barrel compared with the January outlook which used an average price of US$47.

Originally published on Advisor.ca

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