Scotiabank: Growth Continues to Slow Amid Trade and Demographic Headwinds
Most Canadian provinces are set for slower growth in 2025 as “a complex mix of trade dynamics, monetary policy responses, and demographic factors continue to weigh on growth,” according to a new Scotiabank outlook. The report notes that “U.S. tariff rates have eased somewhat from initial levels, [but] they remain a significant headwind,” with manufacturing-heavy provinces like Ontario and Quebec hit harder than resource-based regions such as Alberta and Saskatchewan. While the Bank of Canada’s recent rate cut and another expected by year’s end will “provide some support to provincial economies,” the report cautions that “slowing population growth is simultaneously lowering underlying potential growth.”
