While the global economy faces a number of risks, including the potential for a shock from China, the most likely scenario is that growth continues, with some headwinds starting to slowly fade, a senior Bank of Canada official said on Wednesday.

Nonetheless, the world economy’s potential growth will be lower than it was 10 years ago, partly because of demographic shifts that policy cannot fully address in the short term, senior Deputy Governor Carolyn Wilkins said.

“There are a lot of downside risks, but I would say though that the most likely thing is that the economy is going to keep growing,” Ms. Wilkins told a panel. “There’s not the typical inflation pressures you see that would result in very abrupt increases in interest rates and that’s often what triggers downturns.”...

This has been excerpted from the 11 May 2016 edition of The Globe and Mail and is available in its entirety at:
http://www.theglobeandmail.com/report-on-business/economy/world-economy-faces-risks-but-growth-likely-bank-of-canada/article29973962/