IMF Projects Global Growth Amid Canadian Economic Challenges

The IMF's 2024 World Economic Outlook projects global growth rates of 3.2% in 2024 and 3.3% in 2025, with inflation expected to decrease from 6.8% in 2023 to 4.5% in 2025. Meanwhile, Canada's economy grew at an annualized rate of 1% in the third quarter, below the Bank of Canada's 1.5% forecast, prompting increased expectations for a potential rate cut in December. This growth was driven by consumer and government spending but was offset by declines in business investment and exports. Despite the overall growth, Canada's GDP per capita has fallen for six consecutive quarters, signaling a decline in living standards. The Bank of Canada has already reduced borrowing costs by 125 basis points since June, aligning with the inflation target. These macroeconomic indicators underscore the challenges and prospects for both global and Canadian economies as they transition into 2024.