Finance Minister Bill Morneau says the country’s economy will grow by 1.5 per cent in the first half of this year and by 1 per cent next year, compared to the forecasts made before the global financial crisis.
Morneau’s announcement comes after Statistics Canada released a report that predicted the Canadian economy would grow by just 1.2 per cent this year.
The federal government said Tuesday that the economy will expand by 1,073,000 in the second half of 2017 and by 2,087,000 the following year.
“The government remains very confident that our economy will be strong enough to continue to build on the momentum created by the global economic recovery,” Morneau said in a statement.
“Our economy will also be able to continue on the path of increasing the pace of economic growth as we continue to add jobs and create good paying jobs.”
“In the first quarter of this fiscal year, the economy grew by 1 percent, and by 0.7 per cent the following quarter, and the economy is expected to grow by 2 percent in 2019,” he added.
Morneue said the economy would add a further 4,400 jobs in the final quarter of the year.
He said the growth in the economy, which grew by 0:10 a.m.
ET Tuesday, was driven by a surge in hiring in the construction sector.
“In a world where so many companies are struggling to find workers, we can be confident that Canada’s employers are already creating new jobs,” he said.
“As construction workers prepare to go back to work, we will see more construction jobs added.”
The economy is forecast to grow 2.2 percent this year, but by 1-1/2 per of that, Morneau predicted it would shrink by 0,664,000.
This means the economy’s gross domestic product will grow at an annual rate of 1.7 percent, or 0.9 per cent slower than the official forecast.
The unemployment rate, meanwhile, will fall to 5.9 percent in the coming quarter, down from 6.9 in the third quarter of 2017.
That would be a decrease of more than 700,000 jobs.
The Canadian economy has added more than 2.4 million full-time jobs since the recession ended in December 2007.