The government in Canada has downgraded the country's economic growth forecast citing reasons like a global slowdown in economic growth and lower commodity prices in international markets.

The country has been able to manage the global slowdown better than several other industrialized nations mainly due to a healthy banking system and a wide resource base. The latest downgrade at a time when the commodity prices have fallen in global markets indicates the level of country's dependence on its resources. A fall in the price of oil and several metals have been hurting the Canadian economy at a time when it is also facing challenges due to consumers with lot of debt and a cooling property market.

Finance Minister Jim Flaherty said, "In particular, Canada has been affected by volatile and lower commodity prices, which are dampening government revenue growth. This will have an impact on the fiscal outlook."

He also said that the government has not changed the forecast for 2012 growth forecast and it remains at 2.1 per cent for real gross domestic product. However, the government expects the economy to record a growth rate of only 2 per cent in 2013 compared to an estimate of 2.4 per cent earlier.