Our latest projections incorporate a permanent shortfall in exports relative to our understanding of fundamentals in order to rebalance our forecast risks, reducing the projected level of GDP by about 0.6 per cent by the end of 2018 compared with our July projection.
Such a reduction in our outlook for exports may sound odd, given the depreciation of the Canadian dollar against the US dollar. However, some of our competitors have also seen large depreciations in their currencies.