Canada : 2016 Article IV Consultation-Press Release; and Staff Report

After several years of solid growth, real GDP growth decelerated to 1.2 percent in 2015, as energy companies slashed investment spending in response to the decline in oil prices. Growth is expected to rebound in 2016, supported by exchange rate depreciation and accommodative monetary and fiscal policies, but uncertainty about oil prices, challenges in sustaining the global recovery, and elevated domestic vulnerabilities suggest risks to the outlook are tilted to the downside. A new government, led by Prime Minister Trudeau, took office in late 2015.