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Macklem: Stagnating Growth Key For Supply To Catch Up With Demand

CANADA
Paraphrasing sections from Q&A below
  • Q: In the MPR you say it’s as likely to see several quarters of negative growth as positive growth?
  • A: Our latest outlook has growth stalling for next several quarters, close to 0% in Q4 and 1H23. That means slightly negative growth is just as likely as slightly positive growth. That’s not a severe contraction but it’s a significant slowing of the economy. With growth at essentially zero for the several quarters, that will give supply time to catch up with demand and relieve price pressures.
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