Early signs indicate that “the worst of the global economic slowdown might be behind us,” says Scotiabank’s Global Outlook. However, the global economy is vulnerable to policy missteps, “notably President Trump's continued threats to disrupt US trade flows.”
"While we continue to think the soft patch we are going through will be temporary, the global economy remains in a delicate position," said Jean-François Perrault, Senior Vice President and Chief Economist at Scotiabank. "At this point in the cycle, confidence is key to sustaining the expansion, and Trump's misguided efforts to make America great risk achieving the opposite."
For Canada, the Outlook report forecasts above-potential growth to resume in the second quarter “as the factors contributing to the soft patch in Q4 2018 and Q1 2019 are reversing.” Economic growth is anticipated to slow to 1.6% during 2019 before rising to 2.1% in 2020, says Scotiabank.
To learn more, read the report here.