Jun 04, 2018
By Michael Kramer
The International Monetary Fund has issued a somewhat gloomy forecast for the Canadian economy – which it says is facing more acute risk factors.
Cheng Hoon Lim, the I-M-F’s assistant director for the Western Hemisphere Department – says the future of the NAFTA talks and recent U-S corporate tax cuts – are heightening Canada’s economic dangers.
She adds that the impact of lower corporate tax rates in the U-S could make Canada a less attractive destination for investment – and it’s time for Canada to examine its own corporate tax structure.
Lim also says the failure to reach a NAFTA agreement within a reasonable time frame – could hurt investment and growth for an extended period.
The I-M-F still identifies the hot housing market as a key domestic risk for the Canadian economy – which it expects to slow to growth of 2.1 per cent this year – after growing by three per cent last year.