IMF Says Canada Can Tackle Weaker Emerging-Market Growth

This article was last updated on April 16, 2022

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In a revised global economic outlook issued by the International Monetary Fund on Tuesday, it has speculated that Canada would survive a sharp drop in emerging-market growth, even though the country’s growth may remain throttled at a lower level this year and next. Among many significant changes made in the regularly updated World Economic Outlook of the IMF, it is anticipated that the fast-growing developing countries were responsible for the globe’s economic growth in recent years.

The report narrates that Canada’s economy is expected to remain as strong as that of its trading partners. The IMF has speculated that Canada’s gross domestic product will calculably grow by 1.6 per cent this year and 2.2 per next year. However, both of these estimates are 0.1 percentage point less than the IMF’s last outlook in July. Moreover, the outlook narrated that countries including China, Mexico, India and Russia are expected to grow significantly slower than previously thought. The IMF stated that market volatility this spring was mostly associated to the uncertainty wavering around the unconventional monetary policy in richer countries that hit emerging markets particularly hard, mostly because their economies were already beginning to flag.

In its revised outlook, IMF lessened its expected growth of emerging markets by 0.5 percentage point, forecast of which was now dropped to 4.5 per cent this year. It added that the world economy is expected to advance 2.9 per cent this year and 3.6 per cent in 2014, in comparison to previous expectations published in July of 3.1 per cent and 3.8 per cent respectively.