New research says Canada is heading into a mild recession as elevated borrowing costs, a downturn in the U.S. and persistent inflation dial up the country’s economic uncertainty.
Deloitte Canada’s latest economic outlook, released ahead of the federal budget on Tuesday, says tight monetary policy is set to squeeze economic growth this year.
But the research suggests the recession won’t be as deep as previously forecasted thanks to the resiliency of the labour market, which is keeping incomes strong.
(Sponsored)
In a tough economy, investing in community is more important than ever
When finances are tight, it might seem counterintuitive to give back, but supporting our most vulnerable neighbours this holiday season can actually help businesses weather their own challenges. At United
Family-owned Coke Canada Bottling investing to grow in Ottawa-Gatineau
Have you ever wondered where your favourite Coca-Cola products come from? Few people in know that over 300 popular beverages products, like Coca-Cola, Coke Zero, Fuze, Fanta, Monster Energy, A&W
The report is forecasting real gross domestic product to fall by 0.5 per cent this year before rebounding with two per cent growth in 2024, while inflation is expected to cool rapidly throughout the rest of this year.
Deloitte says the federal budget, set to be tabled in Ottawa Tuesday afternoon, will likely include affordability measures to help lower-income Canadians, health care support for provinces and incentives to reduce carbon emissions.
The report says these priorities should not have a notable impact on inflation — provided the spending increases are not dramatic.
