RBC expects 'mild' recession in middle of 2023
BNN Bloomberg
Royal Bank of Canada economists are expecting a recession in the Canadian economy during the second and third quarters of the year, according to a report on Canada’s economic outlook that came out this week.
Their prediction puts a more specific timeline on RBC’s previously stated predictions for a 2023 recession, even though economic growth “has been more resilient than feared in the wake of aggressive interest rate increases” that began last year.
The economists said higher central bank interest rates will continue to impact the economy in 2023, weighing on household purchasing power and the housing market. At the same time, they said the global manufacturing outlook has softened and eased supply chain disruptions to help slow inflation.
“Against that backdrop, the most likely scenario is still that the U.S. and Canadian economies will both enter mild recessions over the middle-quarters of 2023,” the report said.
