If the Prime Minister doesn’t have enough problems with the ethics debate going on in Ottawa these days, there’s also the state of the Canadian economy. It’s slowing.
Last week, StatsCan reported that Q4 growth fell to almost zero and that capped the year with expansion of 1.8 per cent, about half the pace of growth in the U.S., where tax cuts stimulated investment and consumer spending.
Now we have a forecast from BMO Bank of Montreal that suggests we can expect further slowing this year – they’re projecting expansion of 1.3 per cent. That’s better than the pace we saw in the last three months of 2018, but slower than last year.
Interestingly, the bank says we can expect growth in every province. So, recession is not part of this report. However, it is calling for a slow growth environment. Saskatchewan, it says, will see expansion of about one per cent. That is a downward revision, but it is ahead of Alberta. This suggests the challenges facing the oil industry are now finding their way into the economic numbers.