The global economy is in the midst of the two slowest years since the recession, says a new CIBC report that announces the bank has cut its 2015 and 2106 world GDP projection to 2.7% and 3.1%, respectively.
The main reason behind the downgrade is continued commodity price weakness, says the report, since prices will remain low for “longer than earlier thought, in line with a downgraded outlook for global economic growth and the lags in trimming supply.”
The report notes, “That’s troubling for a Canadian economy [that’s] in the late innings of a housing and consumer borrowing boom […] We already know that growth prospects have cooled in energy-centred provinces, and the risk is that homebuilding will soon top out in others. The Bank of Canada is hoping that exports and capital spending outside the energy sector help fill these gaps.”
This story originally appeared on the site of our sister publication Advisor.