Bay Street’s top economists signal cautious optimism about 2026
Canada is entering 2026 in better economic shape than expected, chief economists from Canada’s major banks told the audience at an Economic Club of Canada event. They forecasted slow but positive growth, steady interest rates and improved business sentiment after Ottawa and the provinces shifted toward more pro-investment policies. “What they’ve done so far is unwind previous bad policy, or they are trying to unwind it,” said Toronto-Dominion Bank chief economist Beata Caranci. “But we’re not in the phase, I believe, of accelerating growth. We haven’t really done a review and a revisiting of our corporate tax structure or personal income tax structure. I do not think we can get into high growth mode without this.”
