OECD Observer
Country snapshots 2017-18: Canada
Growth to strengthen outside resource sector

Economic growth is projected to increase to 2.3% in 2018. As contraction in the resources sector slows, activity in the rest of the economy is projected to strengthen. Non-energy exports should continue to benefit from stronger export market growth and earlier exchange rate depreciation. Consumer price inflation should pick up to around 2% as the effect of falling energy prices fades and excess capacity is gradually eliminated. 

The moderately expansionary policy stance in the 2016 federal budget will help to speed the economy’s return to full employment. It also increases scope to raise interest rates, which would mitigate financial stability risks arising from high and rising house prices and household debt. A gradual removal of monetary stimulus is projected from late 2017 to stabilise inflation at around the 2% midpoint of the official target range. Macroprudential measures have been strengthened recently, but may need to be tightened further and targeted regionally to reduce financial stability risks.  

GDP growth


Current prices CAD billion




% real change



1 983.3 1.2 2.1 2.3

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©OECD Observer No 308 Q4 2016