A third factor that distinguishes growth in the current and next few years from previous years is that, while the period of expansion started in an environment of highly accommodative monetary conditions worldwide, it (growth) is now forecast to continue in an environment of higher interest rates.
Our analysis suggests that the combined impact of adjusted spending plans announced to date would lead to a downward revision for our growth outlook of about 0.2 percentage points in 2020. In sum, the Canadian economy is currently facing some headwinds, but there is good reason to believe that the economy will accelerate in the second half of this year.