New research says Canada is heading into a mild recession as elevated borrowing costs, a downturn in the U.S. and persistent inflation dial up the country’s economic uncertainty.
Deloitte Canada’s latest economic outlook, released ahead of the federal budget on Tuesday, says tight monetary policy is set to squeeze economic growth this year.
But the research suggests the recession won’t be as deep as previously forecasted thanks to the resiliency of the labour market, which is keeping incomes strong.
The report is forecasting real gross domestic product to fall by 0.5 percent this year before rebounding with two percent growth in 2024, while inflation is expected to cool rapidly throughout the rest of this year….