Canada

Interest rate pressure

Click on the globe for Key Economic Forecast & Indicators

Growth has been higher than expected so far this year, and the economy is now estimated to be operating close to full capacity. The pace of activity should remain buoyant up to the beginning of 2005, before cooling down to near potential rates of around 3%. With soaring oil prices and easing capacity constraints, inflation is expected to hover above the mid-point of the target range until next year.
The Bank of Canada needs to continue raising interest rates toward their neutral level to ensure adherence to the inflation target. The government should avoid any easing of the fiscal stance at this juncture, despite the unexpectedly large surplus recorded for the last fiscal year. Great vigilance should be exercised over spending, in particular with regard to additional transfers from federal to lower levels of government.
Population (000s), 200331 630
Area (000 sq km)9 976
CurrencyDollar
GDP (Billion USD), 2003856.6
Life expectancy at birth (Women, Men), 2001 82.2, 77.1
Total labour force (000s), 200317 102
Government typeConfederation
Indicators% change unless otherwise indicated
200420052006
GDP growth3.03.33.1
Household savings ratio1.51.61.7
Consumer price index1.92.01.8
Short-term interest rate (%)2.53.54.2
Unemployment rate (%)7.27.17.2
General government financial balance (% GDP)-1.11.21.0
Current account balance (% GDP)3.43.94.3
Source: OECD© OECD Observer No 245, November 2004


Economic data

GDP growth: +0.6% Q1 2019 year-on-year
Consumer price inflation: 2.3% May 2019 annual
Trade: +0.4% exp, -1.2% imp, Q1 2019
Unemployment: 5.2% July 2019
Last update: 9 September 2019

OECD Observer Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Subscribe now

<b>Subscribe now!</b>

Have the OECD Observer delivered
to your door



Edition Q2 2019

Previous editions

Don't miss

Most Popular Articles

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2019