Canada tops G7 in growth estimate

The International Monetary Fund has raised its estimate for Canada’s economic growth rate for this year and 2018, putting it at or near the top of the heap among advanced economies.

The Washington-based IMF is now estimating Canada’s gross domestic product for 2017 will be 3.0 per cent — half a percentage point higher than its July estimate.

That would put Canada ahead of all the other Group of Seven countries, with the United States coming second at 2.2 per cent growth from last year.

The IMF’s world economic outlook is similar to estimates issued last month by the Paris-based OECD, which also said Canada would top the G7 countries this year.

The International Monetary Fund says Canada’s pickup in growth reflects reduced drag from lower oil and gas prices with assistance from government spending and central bank policies.

It expects next year’s Canadian year-over-year growth rate will slow to 2.1 per cent in 2018, but that’s still 0.2 per cent above the IMF’s July update and secondhighest among the G7 behind the United States at 2.3 per cent.

The IMF also raised its estimate for world economic growth to 3.6 per cent this year and 3.7 per cent in 2018. For both years, the outlook is up 0.1 percentage points from the IMF’s previous forecast in July and would mark the fastest growth since 2010.

The world economy grew 3.2 per cent in 2016.

The global recovery appears widespread — three-quarters of the globe is enjoying an upswing for the first time this decade — and many of the fears of a prolonged slump that started after the Great Recession of 2007-2009 have eased.