Fitch ratings agency downgraded Canada’s credit rating, with the outlook for Canada’s economy improving.
Fitch’s outlook on Canada’s outlook for the economy remains positive, and Fitch says it is now more confident than ever that Canada is heading in the right direction for the coming years.
The agency says Canada’s economic recovery is improving, but there are some minor risks.
The economy is likely to remain stronger than its current level over the coming 12 months, with some potential for further improvement, the agency said in a report Wednesday.
Canada’s economy is expected to grow at a 3.5 per cent annual rate this year and a 6.4 per cent rate in 2019.
It is forecast to be stronger than that in 2019, though it is still projected to be in the black in 2020, the report said.
Fitches’ outlook is in line with a recent report by BMO Capital Markets that said Canada’s growth is likely in the mid-3 per cent range.
The firm also expects that the recovery in the Canadian economy will be similar to that in the U.S.
The outlook for manufacturing is strong, with output expected to remain strong in 2019 and 2020.
The economic recovery will be faster than the pace of the U,S.
recovery, Fitch said.
The unemployment rate remains above 8 per cent.