‘Little evidence’ of a recession, with economic growth forecast to hit 0.7% in 2026, Deloitte says
Deloitte Canada says the Canadian economy is expected to recover later this year, forecasting growth of 0.7% in 2026 and 2% in 2027 after weak economic activity in early 2026. The firm attributes current sluggishness to trade tensions, higher energy costs, supply chain pressures and weak consumer and business confidence, but expects investment and job creation to improve as economic uncertainty eases. While Canada has technically entered a recession based on two consecutive quarters of declining GDP, Deloitte argues the downturn is not broad enough to qualify as a true recession and warns that unresolved trade issues with the U.S. remain the biggest risk to the outlook.
