Canada’s economic engine is gearing down

RBC Quarterly Macroeconomic Outlook

RBC Economics presents an in-depth analysis of the key drivers of economic activity in Canada and the US, including global factors that affect near-term forecasts.

Key highlights

"On a per-person basis, Canadian GDP has now declined for four straight quarters."

  • Headwinds from higher interest rates and a slowing global economy are building
  • A long-expected “mild” economic downturn may have already begun in Canada
  • Economic growth looks dramatically softer in the context of a surging population
  • Rising unemployment in Canada has come from slower hiring rather than faster hiring
  • Employment growth has slowed but was still up over the past four months
  • Job openings are drifting lower—a sign that labour demand is flagging

 

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Sources

RBC Economics, Macroeconomic Outlook, September 2023