OECD Boosts Canada’s Economic Growth for 2021

The Organization for Economic Co-operation and Development (OECD) has raised economic growth projections for Canada this year, as restrictions begin to ease and Covid-19 case numbers fall.

According to the OECD’s latest growth projections, Canada’s economy is now slated to expand by 6.1% this year. The latest forecast marks s considerable increase from the previous projection of 4.7% made by the OECD back in March. Household pent-up savings are also expected to boost Canada’s economy, especially as market conditions improve and prompt an increase in consumer spending.

*The pre-crisis growth path is based on the November 2019 OECD Economic Outlook projection, with linear extrapolation for 2022 based on trend growth in 2021.
Source: OECD

The newest upgrade is in response to the lifting of restrictions across key regions of the country by the second half of the year, as the ongoing vaccine rollout contributes to falling Covid-19 case numbers. On the other hand, however, the emergence of more contagious virus variants may create further risks to Canada’s economic recovery.

Information for this briefing was found via the OECD. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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