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The International Monetary Fund downgraded its outlook for the Canadian economy, saying growth will be more subdued this year and next as the commodity price crash continues to take its toll.

In a quarterly report issued Tuesday, the IMF said Canada’s gross domestic product will grow only 1 per cent this year, down from an earlier forecast of 2.2 per cent, made in April. And while economists and the Bank of Canada have forecast a return to stronger growth next year — current consensus among economists surveyed by Bloomberg is 2 per cent — the IMF said it does not see a strong rebound, predicting growth of just 1.7 per cent.

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Canada is not the only economy, however, expected to register disappointing growth this year. The IMF said the global economy will grow by only 3.1 per cent this year — the slowest pace since the 2009 global recession and down from 3.4 per cent growth last year.

“In an environment of declining commodity prices, reduced capital flows to emerging markets and pressure on their currencies, and increasing financial market volatility, downside risks to the outlook have risen,” the IMF said.