The Conference Board of Canada is also lowering its growth forecast for the Canadian economy this year.
The think-tank cited this spring's wildfires in Fort McMurray and a slide in business investment in the oil and gas sector as it issued a new forecast that downgrades its growth expectations for the domestic economy from 1.6 per cent to 1.4 per cent for 2016.
The downgrade echoed a move earlier this week by the International Monetary Fund, which lowered its 2016 forecast for Canadian growth from 1.5% to 1.4%, also citing weakness in the resource sector.
The Conference Board said business investment in the oil and gas sector is forecast to fall by $14 billion this year with the price of oil expected to remain near $50.00 U.S. a barrel.
The board goes on to cite weakness in the global economy as another agent weighing things down here, as the U.K.'s vote to leave the European Union and the failed coup in Turkey could hurt business confidence.
It also says the low Canadian dollar will not be enough to stop export growth from slowing, as U.S. consumers remain cautious and the global outlook is uncertain.
The fires that swept through northern Alberta in May and June are forecast to cause a 0.1% hit to the country's economic growth this year, as many oilsands operations had to shut down, costing our coffers in the billions for lost revenue.
Earlier this month, the Bank of Canada lowered its expectations for economic growth this year to just 1.3%. That's down from the 1.7% the bank was forecasting as recently as April.
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