The International Monetary Fund said on Monday that Canada is coping well with lower oil prices and weaker growth, but needs to pursue a fiscal and monetary policy mix that supports near-term output. In a statement following its annual policy review with Canada, the IMF cautioned the full macroeconomic and financial effects of the oil shock have yet to fully play out in Canada, which saw real gross domestic product growth halve to 1.2 percent in 2015. The Fund said its board of directors welcomed Canada’s “pro-growth” budget and noted that additional fiscal support should be considered if conditions worsen. “Growth is expected to rebound in 2016, supported by exchange rate depreciation and accommodative monetary and fiscal policies, but uncertainty about oil prices, challenges in sustaining the global recovery, and elevated domestic vulnerabilities suggest risks to the outlook are tilted to the downside,” the […]