IMF leaves economic outlook for Canada unchanged

Canadian dollars in Vancouver, on Sept. 22, 2011. (THE CANADIAN PRESS / Jonathan Hayward)

The International Monetary Fund has cut its growth projection for the world this year but left its outlook for Canada unchanged from its earlier estimates in October.

In its revision to the semi-annual World Economic Outlook, the Washington-based lender predicts the global economy will grow by 3.4 per cent in 2016 -- down from 3.6 per cent in the earlier estimate.

The IMF also cut its global growth projection for 2017 by two-tenths of a percentage point to 3.6 per cent.

It says China's efforts to change structure from an economy led by exports and infrastructure investment to a consumption-oriented economy are among the factors that will continue to "weigh on growth prospects" this year and next.

The IMF left its growth projection for Canada for this year unchanged at 1.7 per cent -- up from estimated growth of 1.2 per cent last year.

But it cuts its Canadian outlook for next year to 2.1 per cent from the 2.4 per cent projected last fall.

It also cut the outlook for the United States by two-tenths of a point to 2.6 per cent growth both in 2016 and 2017.