Canada’s consumer price index (CPI) reached 1.9 per cent in January thanks to higher gasoline prices, which were offset by the recently concluded tax holiday. Excluding gasoline, the CPI rose to 1.7 per cent. Inflation has been at or below the Bank of Canada’s 2 per cent target for six months in a row, ... READ MORE >
gross domestic product
Trump’s steel and aluminum tariffs turn uncertainty into concern for Canada
It took less than a week for the uneasy pause in trade tensions between Canada and the U.S. to reignite after U.S. President Donald Trump announced steep tariffs on steel and aluminum imports. The 25 per cent tariff, which is set to take effect on March 12, includes products from Canada — the largest ... READ MORE >
Canada’s unemployment rate falls to 6.6% as business sentiment improves
Canada’s economic resurgence appears well under way. The economy added 76,000 jobs in January, the employment rate rose 0.1 percentage points to 61.1 per cent and the unemployment rate fell 0.1 percentage points to 6.6 per cent. The unemployment rate fell back to a level last seen in October 2024—and ... READ MORE >
Even with pause, Trump’s tariffs and Canada’s response establish volatile new economic reality
Editor's note: This article has been updated following news of the pause in implementing tariffs. After a weekend that saw U.S. President Donald Trump impose steep tariffs on Canadian goods and Prime Minister Justin Trudeau put forward retaliatory measures, the widely feared tariff war appears on hold ... READ MORE >
Canada’s consumer price index rises by 1.8% as tax holiday takes hold
Canada’s consumer price index rose only 1.8 per cent in December and declined 0.4 per cent on a monthly basis thanks to the tax holiday and disinflation forces throughout the economy. These developments happened even with higher base effects and gasoline prices rising above their usual seasonal ... READ MORE >
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 >
Fed cuts rates as it signals a prudent pause to assess policy uncertainty
The Federal Reserve reduced its policy rate by 25 basis points to a range between 4.25% and 4.5% at its meeting on Wednesday while communicating to policymakers and the public that its reductions will be on pause until it gets a better sense of the policy changes to come. We are updating our ... READ MORE >
U.S. economic outlook: Expansion continues into 2024
Solid consumer spending driven by real personal income gains and sustained private investment will underscore a steady pace of growth at or near the 1.8% long-run rate in the United States in 2024. We expect that policy tailwinds from both the fiscal and monetary authorities will set the stage for ... READ MORE >
Potential impact of UAW strike would not be sufficient to cause recession
The threat of a strike among the 146,000 United Auto Workers at the so-called Big Three automakers of Ford, General Motors and Stellantis puts at risk half a billion dollars per day in an economy that generates more than $26.7 trillion in goods and services each year, or more than $73 billion per ... READ MORE >
U.S. second-half economic outlook: Muddling through
The resilient American economy refuses to go gentle into that good night. The evidence is growing stronger: A rapid decline in inflation amid robust hiring and an unemployment rate that stands at 3.6% despite a steep rise in interest rates. That reality, reflected by what looks to be ... READ MORE >