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Top Links: Canada’s private sector ‘essentially tapped out’ Add to ...

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A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading this morning on the Web

HSBC chief economist for Canada David Watt predicts anemic growth for the domestic economy because the Canadian consumer’s ability to spend is extremely limited,

“With the highest household debt-to-GDP ratio in the G7, Canada's over-leveraged household sector has been identified by the IMF, OECD, credit rating agencies, and the Bank of Canada as a downside risk to financial stability. Canada's private sector, in our view, is essentially tapped out… We look for Canada to remain on a subdued growth, low inflation, low interest trajectory, with GDP growth seen at 1.8% in 2017 and 1.7% in 2018. The challenges of adapting to lower oil prices persist with business investment still a headwind, and uneven gains in exports.”

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