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Risks to Canada ‘substantial’ if oil stays below $50 for next five years, BofA warns

Canada will be one of the hardest hit countries in the developed world if oil stays low, barely eking out 1% growth a year, Bank of America economists warn.

Canada is going to be among the hardest hit nations within the planet if oil remains below US$50 for the next five years, barely eking out one per cent growth annually, economists say.

“In a world of ultra-low oil prices, Canada’s growth model must change,” said Emanuella Enenajor, senior United states economist for Bank of the usa Merrill Lynch. “But it isn’t clear what sector will fill these shoes that energy once wore.”

The bank’s report was based on a roundtable discussion of economists and strategists exploring the “lower for longer” scenario for oil prices.

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