Canada Has Room To Ramp Infrastructure Spending: BAML

Though not much seems to be going right for Canada’s economy, the federal government has room to ramp up its infrastructure spending plan by a further $15 billion per year, which can offer a modest tailwind for the economy for a few years, believe analysts at Bank of America Merrill Lynch. Emanuella Enenajor, Ralph Axel and Ian Gordon point out in their Feb. 3 research report titled “The visible hand” that Ottawa has room to spend more than initially announced, helping to ease the pain of the oil shock.

Canada’s federal government could add $15 billion per annum

According to the BAML analysts, Canada’s economy has deteriorated since the days of the stimulus announcement during the fall federal election campaign. Enenajor and...