Proactive Investors - The International Monetary Fund (IMF) has revised its growth forecast for Canada's economy, lowering it to 1.3% for 2023, down from its earlier projections of 1.7% in July and 1.5% in April.
However, the UN's financial arm increased its Canadian outlook for 2024 to 1.6%, up from 1.4% in July.
This comes as it warns of a global economic slowdown, impacted by higher interest rates, geopolitical tensions, and the ongoing conflict in the Middle East. The global economy is expected to grow at 2.9% in 2024, down from an expected 3% this year.
In contrast, the US economy is projected to grow 2.1% this year and 1.5% in 2024, both higher than earlier IMF estimates.
Chief economist Pierre-Olivier Gourinchas noted that the world economy has shown "remarkable resiliency" despite challenges such as the COVID-19 pandemic and Russia's invasion of Ukraine.
He added that aggressive interest rate hikes by central banks, including the U.S. Federal Reserve, have helped contain inflation without causing significant unemployment, aligning with the concept of a "soft landing" for the global economy.