Economic and Fiscal Outlook - October 2018 - Revised Oct. 31, 2018

Consistent with the Parliamentary Budget Officer’s legislated mandate, this report provides PBO’s economic and fiscal outlook. The Canadian economy continued to operate above its potential output in the first half of 2018. Fuelled by strong export growth, real GDP growth averaged 2.2 per cent in the first two quarters of the year. As underlying inflation moved up to the 2 per cent target and wage growth improved, the Bank of Canada raised its policy interest rate by 25 basis points in January and again in July.