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The spike in financial market volatility around the world will not leave Canada unscathed, said CIBC World Markets, as it downgraded its outlook for the country’s economic growth this year.

The bank’s chief economist said Thursday that he now sees gross domestic product expanding by just 1.3 per cent this year, compared with a forecast of 1.7 per cent made at the start of the year.

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CIBC acknowledged the downgrade, hitting just a month after it issued its 2016 forecast, is unusual.

“But then again, these are unusual times,” said Avery Shenfeld, chief economist of CIBC World Markets. “Oil’s further plunge, and a similar malaise across most of the resource space, continues to push back the timetable for reaching a bottom in related capital spending in Canada.”

The downgrade brings CIBC even further below consensus calls for economic growth this year, which based on a survey of economists by Bloomberg, currently sits at 1.8 per cent.