Canada

In brief

Justin Trudeau's Liberal Party is embarking on an ambitious and transformative policy agenda, but opposition parties will prove more effective in 2017 under new leaders. Public spending on infrastructure will increase, while environmental targets will stiffen. We expect economic growth to accelerate significantly in 2017, to 2.4%, as consumers continue to spend, business investment recovers and the government runs a fiscal deficit. Growth in 2018 will be reasonable, at 2%.