The Canadian economy is stuck in neutral, dragged down by debt-laden households and deficit-fighting governments, Toronto-Dominion Bank said in its quarterly forecast released today.
“Canada’s economy is stuck in a soft patch,” the bank’s economics team said. “Fatigued households and debt-laden governments have recently been shifting their attention to restraint. Meanwhile, a weak global environment and an elevated exchange rate are weighing on the export sector.”
They’re all adding up to keeping Canada’s economy in a funk, with growth below two per cent and unemployment above seven per cent for the next while,” the bank says.