Momentum Slowing: IMF Cuts 2019 Growth Forecasts for Canada and World

Global Economy Set for Weakest Growth in Years

The stock markets may be closing in on the longest bull market in history, but economic indicators, which are reflected in corporate earnings, suggest the momentum on Bay Street and Wall Street is grinding down. The International Monetary Fund (IMF) cautioned that the global economy is slowing, and economic issues will get worse should the trade war between the U.S. and China continue. The global economy will also suffer if Britain leaves the European Union without a deal.

The IMF, an organization that oversees the international monetary systems, promotes employment, and economic development, cut its forecast for global growth, blaming trade tensions between the U.S., the world’s biggest economy, and China, the world’s second biggest economy. It also cited rising U.S. interest rates as a potential economic headwind, a “no-deal” Brexit for the U.K, and an economic slowdown in China.1

The IMF expects 2019 global growth to come in at 3.5%, down from 3.7% in 2018. Just this past October, the IMF said it expected 2019 global economic growth to reach 3.7%. The IMF left its outlook for the U.S. economy unchanged at 2.5%.

It’s a different story in China. China’s gross domestic product (GDP) grew 6.6% in 2018, its slowest pace since 1990 and down from 2017 GDP growth of 6.8%. A slowdown in China could threated global growth.

The IMF downgraded its economic outlook for Canada. This year, the fund estimates 2019 growth at just 1.9%; down from the October forecast for growth of 2.0%. The IMF is less optimistic about Canada’s economic outlook in 2019 but it’s slightly more optimistic than what the Bank of Canada is expecting. The central bank said in early January that it now predicts 2019 gross domestic product (GDP) growth of just 1.7%, down from its October forecast of 2.1%.2

The Bank of Canada’s dour economic outlook for 2019 is being fueled by low oil prices, rising oil inventories, and lower demand. To add some perspective on that, oil and gas added $117 billion to Canada’s GDP in 2018, six times what Ontario’s auto industry did.

On top of that, consumer spending and housing investments are weaker than expected; this is a result of higher interest rates, which is cutting into household spending, and stricter lending rules, which is hurting the Canadian real estate market.

Learn-To-Trade.com, Canada’s Leader in Stock Market Trading Courses

If the Canadian economy plateau’s in 2019 and global economy slows down, we’ll see this reflected in corporate earnings and business outlooks, which will impact share prices. The trading experts at Learn-To-Trade.com can show you trading methods that can help you make money no matter what the markets are doing.

As Canada’s oldest and leading provider of stock market trading courses, the professionals at Learn-To-Trade.com have helped tens of thousands of investors, just like you, trade more confidently and profit more consistently.

At Learn-To-Trade.com we understand that no two investors are alike. That’s why we provide a unique, Lifetime Membership that allows you to re-attend any part of the program as often as you’d like.

To learn more about Learn-To-Trade.com’s stock market trading course, contact us at 416-510-5560 or by e-mail at info@learn-to-trade.com.

Sources:

  1. “World Economic Outlook Update, January 2019”, IMF, last accessed January 21, 2019; https://www.imf.org/en/Publications/WEO/Issues/2019/01/11/weo-update-january-2019.
  2. “Bank of Canada maintains overnight rate target at 1 ¾ per cent”, Bank of Canada, January 9, 2019; https://www.bankofcanada.ca/2019/01/fad-press-release-2019-01-09/.

Photo Credit: iStock.com/bluebay2014

The following two tabs change content below.
George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members. Add me to your G+

Testimonial 1

Don’t hesitate jump into it right now. You will be glad you did!

Susan C

Learn To Trade
4.0
2014-08-19T04:45:40-04:00

Susan C

Don’t hesitate jump into it right now. You will be glad you did!

Testimonials 2

The ongoing support has been the reason for my success

Patrick L

Learn To Trade
4.0
2014-08-19T04:46:33-04:00

Patrick L

The ongoing support has been the reason for my success

Testimonial 3

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Steven R

Learn To Trade
4.0
2014-08-20T02:56:18-04:00

Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Joseph L

Learn To Trade
4.0
2014-08-20T10:36:37-04:00

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Harley S

The course is amazing. Where were you 30 years ago?

Harley S

Learn To Trade
5.0
2014-08-20T10:37:39-04:00

Harley S

The course is amazing. Where were you 30 years ago?

Partick M

I learned the basics I needed to trade successfully.

Partick M

Learn To Trade
4.0
2014-08-20T10:38:34-04:00

Partick M

I learned the basics I needed to trade successfully.

Iouri G

I like making money. I’m very happy, so far so good

Iouri G

Learn To Trade
4.0
2014-08-20T10:39:27-04:00

Iouri G

I like making money. I’m very happy, so far so good

Akos B

I learned things it would have taken me years to figure out

Akos B

Learn To Trade
5.0
2014-08-20T10:40:05-04:00

Akos B

I learned things it would have taken me years to figure out

Robert B

There is always someone ready to answer my questions.

Robert B

Learn To Trade
4.0
2014-08-20T10:40:59-04:00

Robert B

There is always someone ready to answer my questions.

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Uldus V

Learn To Trade
5.0
2014-08-20T10:41:40-04:00

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Dean K

I wish I knew about trading as a business years ago!

Dean K

Learn To Trade
4.0
2014-08-20T10:42:24-04:00

Dean K

I wish I knew about trading as a business years ago!

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Peter P

Learn To Trade
4.0
2014-08-20T10:42:57-04:00

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Shelley P

Learn To Trade
5.0
2014-08-20T10:34:39-04:00

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Amir

Hi George,

I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
Learn To Trade
5.0
2016-10-07T08:56:52-04:00
Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
4.0
14