Economists revised their growth estimates for Canada higher this year, though the recovery is expected to lag the US.
Canada’s economy is expected to expand 4.7% in 2021, according to Bloomberg’s latest monthly survey of analysts. That’s up from a previous yearly estimate of 4.4%. Growth in 2022 is seen at 4.1%, little changed from the January survey.
The upward revision reflects what has been a more upbeat outlook in recent weeks. The global vaccine rollout, rising commodity prices that help Canada and potential impacts from more fiscal stimulus in the US are driving the more optimistic predictions.
But economists upgraded US growth by even more than in Canada, seeing it at 4.9% in 2021 versus a 4.1% estimate only a month ago. If the projections prove right, the US will have outperformed Canada for a fourth straight year.
Canada’s economy is estimated to have contracted
by 5.4% in 2020, versus a
decline of 3.5% in the US.