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Economics - Apr 13, 2018

Scotiabank Outlook: Global growth amid rising trade frictions

April 12, 2018

BY SCOTIABANK PERSPECTIVES

The global economy is "firing on all cylinders" but risks are rising too, according to the latest quarterly Global Outlook from Scotiabank Economics.

Here are the key points, with Scotiabank Chief Economist Jean-François Perrault.

An already strong U.S. economy is being "turbocharged" by the fiscal stimlus of tax cuts and public spending.

The outlook for growth in Canada is slower, but relatively strong.

The prospects for a successful NAFTA resolution are rising.

But risks are mounting, too.

The Bank of Canada must keep watch on indebted households as it seeks to contain inflation by ratcheting up interest rates.

The greatest risk? The threat of trade actions from Washington that could trigger an all-out trade conflict with China. That could weaken the world's two largest economies, with serious implications for Canada and the rest of the world.

Click to read the complete Scotiabank Global Outlook.