While the negotiation of the new U.S.-Mexico-Canada Agreement is a huge relief to Canadian exporters, the global threats of protectionism, populism, and rising interest rates continue to complicate decision-making.
Still, the economics team at Export Development Canada sees hope in its biannual Global Economic Outlook, forecasting global growth to increase by 3.2 per cent in 2019, a repeat of 2018 performance. “Growth is strong – powered principally by the U.S. economy – and it’s spreading,” said Peter Hall, Chief Economist at EDC. “There is a lot of evidence that this has spurred activity in Europe and is making its way into the emerging economies. But the best part is, it’s sustainable. While a growing chorus of analysts disagrees, evidence of developed-world pent-up demand cannot be denied.”
Read the full report here: USMCA a relief, but global growth still faces headwinds