TORONTO – Royal Bank says low oil prices can make 2016 tougher for Canada’s economy than previously thought.
The bank has lowered its forecast with this year’s gross domestic product to just 1.7 percent.
That’s down from RBC’s December forecast of 2.2 per cent growth this year.
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RBC is constantly on the expect Canada’s economic growth will be underpinned by solid consumer spending, stronger exports and stimulus in the federal government.
But it says oil prices were less than estimated early this season and they’ll weigh on business investment.
The bank’s latest quarterly economic forecast estimates the average price of West Texas Intermediate crude will be US$40 per barrel this year – $12 less than its previous forecast in December.
RBC can also be lowering its 2017 oil price estimate to US$57 per barrel from $62.
