Economists at Bank of Nova Scotia have raised their 2015 GDP forecasts for both Canada and the U.S. slightly, according to a new report.
Scotiabank has raised its estimate of Canadian gross domestic product (GDP) growth in 2015 from 1.1% to 1.3%, the report says, citing the release of upwardly revised historical data as the central reason for the increase.
However, the bank’s forecasts of 1.8% growth in 2016, and 2.3% in 2017, remain unchanged. Scotiabank’s expectations of modestly faster growth over the next couple of years is “underpinned by a gradual pickup in non-resource exports, increased infrastructure investment and steady, albeit moderate consumer spending growth,” the report says.
Yet, the report also notes that low commodity prices and general economic uncertainty are expected to “continue to weigh on business investment plans for the time being.”
The bank has also nudged its forecast for U.S. GDP growth up from 2.4% to 2.5% in 2015, again citing an upward revision to the third quarter numbers. “While recent reports have been somewhat mixed, consumer spending and housing activity remain well supported by pent-up demand, a robust job market, rising income gains and low gas prices,” the report says says. “This should be sufficient to offset a sluggish export trend and underpin output growth averaging 2.6% over the next two years,” the report adds.