Commentary
For economic prognosticators, the year that just ended threw up some big surprises, including the first land war in Europe since 1945, spiralling inflation, and a series of rapid-fire interest rate increases as panicked central bankers rushed to tame soaring prices.
Few, if any, forecasters anticipated these developments—a stark reminder of how hard it can be to predict where the economy is headed.
The good news is that overall economic output (gross domestic product, or GDP) and employment in Canada have more than fully rebounded from the brief COVID-induced recession of 2020. Indeed, for at least the past year, Canada’s economy has been operating above potential, meaning demand has exceeded supply….