TD Bank cuts outlook for growth this year to 1.3 per cent due to wildfires

OTTAWA – TD Bank is cutting its expectations for economic growth in Canada this year due to the Alberta wildfires that temporarily shut down much of the province’s oilsands production.

The bank says it now expects the national economy to grow 1.3 per cent this year. That compares with a prediction in March for growth of 1.9 per cent.

TD says the wildfires will likely widen the gap between outperforming regions of the country and Alberta, which was already hit hard by the global drop in oil prices.

However, it expects rebuilding efforts will help Alberta’s growth in the second half of the year and into 2017.

The bank’s forecast suggests exports will remain a key area of support for growth this year, despite near-term volatility.

TD predicts good performance from products related to housing, such as wood products, plastic and rubber products, and furniture.