No, Canada’s economy isn’t on fire. Growth is returning, but on a permanently lower path
Canada’s economy is improving, with employment rising and unemployment falling, but the latest data do not support describing it as “on fire,” says University of Calgary professor Trevor Tombe. Despite the recent recovery, Canada’s economy remains roughly 2% smaller than it was projected to be before the 2025 shift in U.S. trade policy and has significantly underperformed most G7 and OECD economies. Tombe says growth is likely to continue, but Canada is returning to normal growth rates from a permanently lower economic trajectory. "A better way to think about it is this: Canada is gradually returning to normal rates of growth, but along a permanently lower path. And measured against our peers, or even against our own potential, recent performance looks anything but strong," he says.
