Oil prices, which were a drag on Canadian gross domestic product last year, have risen almost 35 percent this year and the discount between domestic and U.S. prices is about one quarter of the levels seen in October.
Despite the Canadian energy sector going through some structural shifts “We are going to see some of that recovery,” in prices reverberating through the wider economy, she said. Chaudhuri expects Canada’s economy to grow by 1.25 percent to 1.5 percent in 2019, although she doesn’t expect the Bank of Canada to hike rates any time soon.
This article was provided by Bloomberg News.