The OECD says Canada’s economy is in a funk and may no longer be a leader among the other G7 industrialized nations in terms of growth.
The Paris-based organization’s latest analysis of the global economy cites firming growth in the United States and Japan, as well as improving prospects for Germany.
It says Canada’s conditions point to continued growth but at a weak pace.
The federal government has long boasted that Canada’s growth was tops among the Group of Seven industrialized economies following the 2008-09 recession But Canada’s growth has been losing steam amid declining prices for key resource exports as well as a slower real estate market and other domestic factors.
A group of about a dozen Canadian economists advised Finance Minister Jim Flaherty last week to expect growth will remain below two per cent in 2013 following last year’s rate of 1.8 per cent growth.
The Organization for Economic Co-operation and Development’s report of leading indicators does not give a specific growth figure for economies, but shows momentum is stalled in Canada, while it is trending up in the U.S., Japan and Germany.
Analysts point out that growth rates are not the final world on economic health, however. Canada’s superior performance the past four years means the economy has already recovered all the losses in output and jobs lost during the slump – and more – while many others are still in catch-up mode.