The Organization for Economic Cooperation and Development has lowered its estimate for Canada's economic growth this year to 1.1%— revised downward from its June estimate of 1.5% — as global growth stagnates.
Its June estimate was itself revised downward from the 2.6% growth for this year it projected in late 2014.
The Paris-based economics organization says that lower prices for oil, coal and metals are hampering countries that depend heavily on commodity exports, such as Canada and Australia.
It has also lowered its estimate for Canada's economic growth next year to 2.1%, a decline of 0.2 of a point from June.
The news came amid signs of a better outlook for the manufacturing sector in Canada. Statistics Canada reported Wednesday that manufacturing sales rose 1.7% to $52.2 billion in July, led by a 5.6% gain in the auto sector.
That comes on top of a gain in May of 0.7% and June of 1.5%, with both numbers revised upward.
But the OECD points to uncertainty around China's future and the vulnerability of emerging economies with debt in U.S. dollars as big question marks for 2015 and 2016.
The OECD is urging the U.S. Federal Reserve not to move quickly to raise rates, as that would strengthen the greenback and cause financial turmoil in the emerging world.
It projects that the U.S. will grow by 2.4% this year and by 2.6% in 2016, a strong outlook that includes a resurgent consumer and improving employment picture. The OECD forecast for 2015 has been raised from 2% in June.
But it warns U.S. growth could be thrown off by instability in its markets around the world and points to lacklustre business investment as a sign.
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