Representative image of Canada’s Mild recession on Unsplash by Jason Pofahl
Ottawa/CMEDIA: According to a new research Canada’s economic uncertainty due to factors including increased borrowing costs, a downturn in the U.S., persistent inflation are leading Canada into a mild recession.
Canada’s latest economic outlook was released by Deloitte ahead of the federal budget on Tuesday, which which says tight monetary policy is set to squeeze economic growth this year.
But thanks to the resiliency of the labour market which is keeping incomes strong, suggested the research, the recession will not be as deep as previously forecasted.
It has been forecast by the report that inflation is expected to cool rapidly throughout the rest of this year as real gross domestic product which falls by 0.5 percent this year, would rebound with two percent growth in 2024.
The report says priorities included in the 2023 budget such as inclusion of affordability measures to help lower-income Canadians, health care support for provinces, government spending cuts and incentives to reduce carbon emissions should not have a notable impact on inflation.
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