Global economic think-tank lowers forecast for Canada's growth this year

The OECD has trimmed its 2015 economic growth forecast for Canada, citing weaker investment in the energy sector following the plunge in oil prices.

The Paris-based organization is now projecting the economy to grow by just 1.5 per cent this year — down 0.7 per cent since its March outlook.

It says the Canadian economy will grow by 2.3 per cent in 2016 as non-energy exports accelerate and consumption rises with help from the lower dollar and stronger foreign growth.

The organization’s latest projections come less than a week after Statistics Canada reported the economy contracted by 0.6 per cent at an annualized rate in the first three months of the year.

That negative reading for the real gross domestic product was below the Bank of Canada’s prediction of zero growth.