The Conference Board of Canada is forecasting the economy will grow by 1.5 per cent this year as uncertainty surrounding U.S. trade policies continues to weigh on business and consumer confidence
Cory Renner, associate director of economic forecasting at the Conference Board, says the economy outperformed expectations in the first quarter, but the momentum is quickly fading.
The report notes the housing market remains under intense pressure, while the trade sector is also in for a rough ride.
Renner says trade disputes are casting shadows over multiple sectors of the economy and are expected to dampen growth throughout the remainder of the year.
While Canadian exporters have turned to new markets with some success, the gains have been insufficient to offset the decline in exports to the U.S., the report says.
It also says business investment is expected to suffer, with concerns over the Canada-U.S. trade relationship keeping spending subdued.
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