OTTAWA – The Organization for Economic Co-operation and Development raised its expectations for economic growth in Canada on Tuesday as the country is expected to top the G7.
The Paris-based economic think tank raised its outlook for growth in the Canadian economy to 3.2 per cent this year compared with a June forecast for 2.8 per cent.
It maintained its Canadian outlook for 2018 at 2.3 per cent.
Meanwhile, the organization’s outlook for global economic growth was unchanged at 3.5 per cent for this year and up slightly at 3.7 per cent for 2018, compared with 3.6 per cent in its previous forecast.
Expectations for the U.S. were unchanged at 2.1 per cent this year and 2.4 per cent next year.
“The short-term outlook is more broad-based and the upturn is promising, but there is no room for complacency,” OECD chief economist Catherine Mann said in a statement.
The OECD upgraded its expectations for the euro area to growth of 2.1 per cent rate in 2017 and a 1.9 per cent pace in 2018. That compared with an earlier outlook for growth of 1.8 per cent in 2017 and 1.8 per cent in 2018.
Growth in Japan is expected to be 1.6 per cent this year and 1.2 per cent next year. That’s up from the June forecast for 1.4 per cent in 2017 and 1.0 per cent in 2018.
The upgrade in the OECD outlook for Canada follows a second quarter that saw the economy grow at an annual pace of 4.5 per cent.
However, the pace of growth in Canada is expected to slow in the second half of the year.
The Bank of Canada has raised its key interest rate target by a quarter of a percentage point twice in recent months, while the housing market has also slowed.