The IMF has put on their grumpy pants and come out against the Canadian Economy again, so says the Globe and Mail.
Markets worldwide reacted with some shock to the news, posting modest declines. But the Toronto Stock Exchange took a bigger hit than most others, falling 1.2 per cent.
The Canadian stock market has been sluggish, relative to other leading global markets, as economic doubts have risen this year. The TSX has grown just 2.7 per cent to date in 2012, compared with a 14.6 per cent jump in the S&P 500 and even 6.7 per cent growth in the Euro Stoxx index.
“We’ve been saying for a while that the Canadian stock market would underperform,” said Pierre Lapointe, the head of global strategy and research for Pavilion Global Markets Ltd. “It has. And we continue to think that it will underperform.”
The IMF report focused heavily on Canada’s deeply entrenched trade relationship with the United States. While Canada’s recovery has been faster, “growth has been constrained by sluggish expansion in the United States,” the report said.
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