JPMOR­GAN BEAR­ISH ON CANADA

Calgary Herald - - FP CALGARY -

Jpmor­gan Chase & Co. cut its forecast for Cana­dian eco­nomic growth be­cause of grad­ual and un­co­or­di­nated ef­forts across prov­inces to re­open. Real gross do­mes­tic prod­uct will shrink by 45 per cent an­nu­al­ized in the sec­ond quar­ter, more than an ear­lier forecast of 30 per cent, Sil­vana Dimino, an econ­o­mist at Jpmor­gan, said. The bank also re­duced its full-year 2020 call to a nine-per-cent con­trac­tion, from seven per cent, even af­ter pre­dict­ing higher aver­age growth in the sec­ond half. The re­vi­sion is “largely ow­ing to the slower and un­even eas­ing of COVID-19 pan­demic re­stric­tions across the prov­inces,” par­tic­u­larly On­tario and Que­bec, which ac­count for more than 50 per cent of GDP,” Dimino wrote. “We still as­sume that April will be the weak­est month of the quar­ter, but we now see higher risks that the eco­nomic re­cov­ery phase will be more drawn out.”

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