Canada's slow economy will start to rebound later this year: economists
BNN Bloomberg
A new report from RBC Economics says that the slowdown in Canada’s economy is not yet over, but will likely start to rebound later this year.
In a note Tuesday, economists at RBC highlighted that Canada’s economy is underperforming relative to its peers with gross domestic product (GDP) not growing at a pace to keep up with population gains. However, the report said Canada’s economic slowdown has not been as “pronounced as featured” following the Bank of Canada’s aggressive tightening campaign that began in 2022.
“Still, the ratio of household debt payments to disposable incomes is at record levels and will continue to rise as mortgages get renewed at higher interest rates. Household delinquency rates have been edging higher and business bankruptcies have been rising sharply for the first time in decades,” the report said.
The economists also noted that housing affordability is weighing on consumer purchasing power.
