Macro - Country Economic Forecasts - Canada

We've raised our GDP growth forecasts by 0.2ppts to 0.9% in 2025 and by 0.5ppts to 0.3% in 2026. The pause in Canada's counter-tariffs, relaxed US tariffs on auto parts imports, and new fiscal stimulus will soften the downturn from the trade war, but likely won’t prevent a recession.


Canada: Fiscal stimulus and relaxed tariffs will soften the downturn
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy
Politics

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