Leading Experts Weigh In On Growing Canada’s Economy In 2022

Leading Experts Weigh In On Growing Canada’s Economy In 2022

Last year, strong vaccination uptake and the reopening of the economy helped Canada rebound from the Covid-19 pandemic slowdown. In the OECD's latest figures, Canada's economy grew by 4. 8% in 2021—but remained lower than the OECD's and global averages of 5. 3% and 5. 6%, respectively. Targeted government support programs boosted household incomes and enabled business recovery, providing stability and resiliency to the economy. However, inflationary pressure, virus variants, and an uneven sectorial recovery pose ongoing short- and medium-term challenges to growth. According to the OECD's Economic Survey of Canada 2021, these challenges could be elevated should the fallout from hard-hit sectors such as leisure, travel, and entertainment begin to impact the rest of the economy. However, fiscal stimulus measures and growth in the United States—Canada's largest trade partner—could help boost export-oriented industries, a core component of the national economy. The OECD has forecasted that, in 2022, Canada's economy will expand by 3. 8%. Compared to last year, that expansion is expected to be lower than the global average of 4. 5%, but on par with the OECD average. Despite recovery signals, Canada continues to face lingering pre-pandemic structural issues related to inclusive growth, energy transition, and healthcare. Furthermore,