economic commentary

March 31, 2019 - Economic Growth Slowing Around the Globe

Forecasts for economic growth continue to be downgraded on fears of a slowdown in the global economy. Eurozone data releases have been poor to start the year, with sentiment becoming more negative. Italy is now in a recession, based on two negative quarters of GDP growth to end 2018. Germany has suffered as well, with a recent purchasing managers’ report confirming a contracting economy.

In Canada, the economy did bounce back nicely following two negative months to end 2018. January GDP surprised on the upside, with a reading of 0.3%. This occurred despite oil production cuts that kicked in during January. Labour markets also remained strong to start the year. Inflation remains at relatively low levels in most developed countries which is also helping to keep interest rates low.

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