Canada not immune to slow growth, OECD shows

But as oil production ramps up, economy expected to rebound

Growth is expected to ease globally as momentum sputters in countries like the U.S., with Canada showing signs of a sharp step down from its G7-leading 3 per cent in 2017, according to a report from the Organization for Economic Cooperation and Development.

The monthly composite leading indicators report Monday affirmed slowing growth across the 36-nation OECD with more declines on the horizon for Canada, the U.K., the eurozone (including Germany, France and Italy), and in the United States, where some cooling is expected this year.

“In the United States and Germany, the tentative signs of easing growth momentum that were flagged in last month’s assessment have been confirmed,” the Paris-based research organization said in a statement.

Most forecasters have been anticipating a global slowdown, with the first quarter of 2019 being seen as particularly weak in Canada due to an 8.7 per cent reduction in oilsands output that kicked in at the start of January.

“We do, however, continue to think growth will rebound from that weak showing as oil production ramps up and the rest of the economy continues to grow roughly at potential,” said Scotiabank deputy chief economist JeanFrançois Perrault in an email.

The OECD data, designed to anticipate turning points in economic activity up to nine months ahead, continues to flag stable growth in Japan, with easing