While household spending will remain the main economic driver, the pace of spending will ease amid rising interest rates, high household debt and moderating employment growth, the board’s 2018 economic outlook for Canada says. The forecast notes that GDP growth began to taper off late last year, and the trend is expected to continue, with 2018 growth pegged at 1.9 per cent, down from 3 per cent in 2017. Low unemployment, however, will help support wage growth, which the outlook says could help cushion the impact of rising interest rates. Overall, real personal consumption is expected to increase by 2.4 per cent, down from 3.5 per cent last year. Housing starts will ease to roughly 213,200 units this year from 219,700 units in 2017, the outlook says.

Source: thestar March 20, 2018 17:03 UTC