Canada’s jobs report for December exceeded expectations in several ways, a credit to a resilient economy poised to grow as more rate cuts are expected from the Bank of Canada. The economy added 91,000 jobs, and the unemployment rate dropped 0.1 percentage points to 6.7 per cent. The employment rate ... READ MORE >
Canada
Trudeau’s resignation spurs uncertainty across Canada’s economy
Justin Trudeau’s resignation as Liberal Party leader and prime minister on Monday ushers in a new wave of uncertainty for the Canadian economy and financial markets. Expect delays in business decisions, sluggish hiring and subdued investments in the immediate aftermath of Trudeau’s resignation. ... READ MORE >
Tariffs would fray Canada-U.S. ties in energy and auto manufacturing
A blanket tariff by the U.S. on Canadian imports is unlikely to materialize early next year despite rhetoric from U.S. president-elect Donald Trump. Still, the mere prospect of new tariffs has caused considerable anxiety in Canada. Such a move would have dire economic implications on both ... READ MORE >
Resignation of Canada’s finance minister before release of fall economic statement adds to uncertainty
(Editor's note: This post has been updated with the latest from the federal government's fall economic statement) Chrystia Freeland’s resignation as Canada’s finance minister highlights increasing uncertainty in the country's political environment as financial challenges loom in 2025. Reaction was ... READ MORE >
How Canadian real estate leaders can adapt and succeed in a volatile 2025
Canadian real estate leaders must decide how to act in 2025 as further interest rate cuts loom, stricter immigration policies take effect and the federal government’s 10-year bonds are up. Real estate leaders view these challenges through a lens of volatility, uncertainty, complexity and ambiguity ... READ MORE >
Bank of Canada cuts interest rate to 3.25% as focus shifts to gap with U.S.
The Bank of Canada lowered its interest rate to 3.25 per cent — an overdue move out of restrictive territory given that inflation has largely been tamed. Expect more rate cuts in early 2025 to get the economy onto an expansionary trajectory. The policy rate should come down to 2.75 per cent within the ... READ MORE >
Canada’s job market cools as unemployment rises to 6.8%
Canada added 51,000 jobs in November, double the expected number, but the overall picture does not look rosy. The unemployment rate increased by 0.3 percentage points to 6.8 per cent — the highest since January 2017 — as more people looked for work. A slow job market finally hit wages, as wage growth ... READ MORE >
Year ahead in Canada: Return to growth as rate cuts take hold
Price stability will fuel economic expansion in 2025 as the Bank of Canada reduces interest rates to a low of 2.75 per cent within the first half of the year. The rate cuts will encourage investment and risk-taking, reduce financing costs on Canada’s elevated debt and put more cash in consumers’ ... READ MORE >
Canada’s prices for services and shelter decelerated in October
Canada’s consumer price index accelerated in October, but that increase will not deter a rate cut by the Bank of Canada in December, though the size of the cut is up for debate. Canada’s CPI accelerated to 2.0 per cent, up from 1.6 per cent in September, because of a smaller decline in gasoline prices ... READ MORE >
Canada’s labour force participation rate fell to the lowest since 1997
Canada's economy in October continued the trend of a weak labour market, adding only 15,000 jobs. Although the unemployment rate remained unchanged at 6.5 per cent, this has been because of people dropping out or staying out of the workforce, as the labour force participation rate fell to 64.8 per ... READ MORE >