Canada’s economy will keep growing this year, despite a sharp drop in oil prices, as a rise in exports to a recovering U.S. market offsets declines in domestic consumption and investment, the International Monetary Fund (IMF) said on Friday.
While the economy has not yet shifted to broad-based recovery, growth is expected to become more balanced this year as the housing market cools, the IMF said.
Still, Canada is a major oil producer and the drop in oil prices will be a drag on growth due to weaker energy sector investment. The IMF forecasts the economy will grow by 2.3 percent this year, slightly below its 2.4 percent forecast for growth in 2014. Click here to read more.