Canada's lagging growth pressures policymakers to add stimulus

By Fergal Smith
| TORONTO, Sept 26

Canadian policymakers are
facing increased pressure to support the country’s lackluster
economy as infrastructure spending takes time to kick in and
record high debt loads dampen the impact of stimulus cheques.Weak oil prices, disappointing growth in non-energy exports
and a wildfire in Alberta that cut oil production have all
weighed on Canada’s economy this year, offsetting fiscal
stimulus measures to support the economy.”The Canadian economy needs more stimulus … fiscal,
monetary, structural,” said David Watt, chief economist at HSBC
Bank Canada.Canadian growth this year is less robust than the government
initially expected, Finance Minister Bill Morneau said on
Monday, adding that the government will look at what more it
might do. The government typically provides a fiscal update in
November or December.The fall update would be a reasonable time to bring forward
fiscal spending if good projects have been identified, said Doug

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