Canada economists see slightly slower growth, little inflation risk

Mon Jun 16, 2014 12:22pm EDT
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OTTAWA, June 16 (Reuters) - Private-sector economists expect Canada's economy to grow by 2.2 percent in 2014 and 2.5 percent in 2015, the Department of Finance said on Monday, down slightly from their previous forecasts.

Speaking to reporters in Ottawa, Finance Minister Joe Oliver also said economists are not too concerned about the risk of low inflation, a view that differs from comments by Bank of Canada Governor Stephen Poloz last week that low inflation remains a risk to the economy.

"The private sector economists are certainly not worried about high inflation. If there is a risk it would be on the downside, but they are not too concerned about that risk," Oliver said.

He also reiterated that Canada should have a budget surplus next year.

The consensus private-sector forecasts for real economic growth compare with February forecasts of 2.3 percent growth in 2014 and 2.5 percent in 2015. (Reporting by Randall Palmer; Writing by Cameron French; Editing by Peter Galloway)