RBC economists say Canada’s economy could fall into a recession as early as the first quarter of next year, but they expect unemployment to be “less severe” than previous downturns.
In a new report, the economists say the downturn won’t hit households and businesses equally.
They say lower-income Canadians will likely be hit the hardest, as purchasing power falls and debt-servicing costs rise.
OBJ360 (Sponsored)
When David McPhedran’s parents emigrated from the United Kingdom in 1968, they didn’t have much, but Canada was known as the land of opportunity, and that’s what they sought for
Building The City We Aspire To Be
Ottawa is facing many challenges: we need more housing that achieves better sustainable density to create homes for families and support small businesses for a diverse economy. We need to
They say higher prices and interest rates will shave $3,000 off the average household’s purchasing power.
The manufacturing sector will likely be among the first sectors to pull back, while service sectors like travel and hospitality could prove more resilient.
The report says the jobless rate, which currently sits at 5.2 per cent, will near seven per cent.
