Canada Headed For Mild Recession

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, says a Deloitte Canada economic outlook, as tight monetary policy squeezes economic growth this year. However, it 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 per cent this year before rebounding with two per cent growth in 2024. Inflation is expected to cool rapidly throughout the rest of this year.