The Parliamentary Budget Officer projects Canada’s real GDP growth will slow to 0.9% in 2026 and 1.5% in 2027, down from 1.1% and 1.6% in its June outlook, due to U.S. tariffs and Canadian countermeasures. New U.S. Section 338 tariffs of 50% on $27.6 billion worth of Canadian goods are expected to weigh on growth until businesses adapt, with a pickup projected from 2028. Inflation is expected to stay at 2.8% by the end of 2026 due to higher energy prices, and the Bank of Canada is assumed to hold its rate at 2.25% through year-end before raising it to 2.75% by mid-2027; inflation reached 3.1% in September. Unemployment rose to 6.5% in September after the economy lost 68,000 jobs and is projected to reach 6.6% by the end of 2026. The report notes that actual outcomes will depend on commodity prices, global growth and the pace of business adjustment.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Canada economic growth to slow to 0 . 9 per cent in 2026
Read the original on financialpost.com ↗
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Related tickers and likely impact
USD/CAD
▲ Likely positiveRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 1.40594 |
| Change that session | -0.36% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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