Canada’s economy is in for a few years of reduced growth according to a new report from Deloitte.
The outlook shows a slump in economic growth from 3% in 2017 to 2% this year and to 1.4% by 2020.
It cites high household debt, rising interest rates, flat real estate markets, and weaker employment growth, for a predicted slowdown in consumer spending.
There is also the impact of external factors including a slower global economy, US protectionism, and tighter monetary policy in North America and Europe.
"The signs that the North American economy is in the late stages of a business cycle are all around us, from a record long bull market in US equities to low unemployment rates and rising central bank rates," says Deloitte Canada's Chief Economist, Craig Alexander. "The negotiation of USMCA reduces the downside risks to the Canadian economy, and economic growth should persist. However, businesses should still prepare for more moderate domestic demand growth and a weaker US economy over the medium term."
The global economy is expected to deliver strong growth of close to 4% in 2018, but the pace of expansion will drop to 3.2% in 2020.