Investor Presentation February 2024 slide image

Investor Presentation February 2024

Economic outlook and indicators1 Canada United States Eurozone Economic Indicators (%) 1,2 2023E² 2024E² 20252 2023E² 2024E² 2025E² 2023E² 2024E² 2025E² GDP Growth 1.1 1.2 2.0 2.5 2.4 1.8 0.5 0.4 1.2 Inflation 3.9 2.7 2.2 4.1 3.2 2.3 5.4 2.6 2.0 Interest Rate (3mth Tbills) 4.74 4.65 3.75 5.28 5.35 4.55 3.43 3.69 2.96 Unemployment Rate 5.4 6.3 6.0 3.6 4.0 4.1 6.5 6.6 6.4 Current Account Balance / GDP³ (0.6) (0.6) (0.7) (3.0) (3.1) (3.1) 1.9 2.3 2.3 Budget Surplus/ GDP³ (1.4) (1.3) (1.3) (6.3) (5.6) (6.0) (3.5) (2.9) (2.6) Canada • • • The Canadian economy has slowed due to higher interest rates but is showing signs of improvement. The economy is expected to expand 1.2% in 2024 Inflation has fallen to 2.9% in March and should decline gradually further this year The Bank of Canada is expected to begin lowering policy rates in June with 75 basis points of cuts anticipated this year United States • • The U.S. economy remains resilient due to healthy consumer spending but will likely moderate in response to elevated interest rates Inflation has picked up to 3.5% in March but is expected to decline gradually in the year ahead The Fed is expected to begin reducing policy rates in July by a total of 50 basis points this year This slide contains forward-looking statements. Refer to the Caution Regarding Forward-Looking Statements on slide 2 1 Data is annual average. Estimates as of April 19, 2024 2 Eurozone estimates provided by IMF BMO M Investor Presentation ⚫ February 2024 38
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