Canada’s GDP growth is likely down 2.7 per cent over the past year, according to a new report by the International Monetary Fund (IMF).
The IMF report says Canada’s economic slowdown is a result of weak consumer spending and the decline in trade with the United States.
According to the IMF, the average Canadian consumer spent $12,927 in January, down from $14,813 in December.
In fact, Canadians’ disposable income is down 7.2 per cent, the report says.
This is despite the fact that consumer spending has risen 7.3 per cent this year.
The report also says the country’s trade deficit with the US has been the worst on record, rising from $9.9 billion in 2014 to $12.7 billion in 2015.
In other words, Canada has not been a net importer to the US.
Instead, it has been a significant exporter to China, Japan, India, the EU and Australia.
The country is expected to hit $25 billion in imports in 2020.
Canada’s GDP is forecast to grow just 1.2% in the next five years.
It is forecast at just $10.9 trillion.