5 bright spots in Canada’s economic forecast

RBC Quarterly Macroeconomic Outlook

5 bright spots in Canada’s economic forecast banner image

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

“But while Canada’s economic path forward remains challenging, it appears considerably less treacherous than it did just a few months ago.”

RBC Quarterly Macroeconomic Outlook

The latest outlook highlights five recent developments that have been more positive than anticipated:

  1. Most Canadian exports have been exempted from increased US tariffs.
  2. “Hard” spending numbers have held up better than “soft” confidence measures.
  3. The Bank of Canada has room to cut rates further if needed.
  4. Canada maintains meaningful capacity to buffer against economic shocks and is increasingly well positioned to support the needs of the global economy.
  5. The de-escalation of US tariffs supports a slow but resilient outlook for the United States, improving Canada’s prospects as well.
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Sources

RBC Economics, Quarterly Macroeconomic Outlook, Q2 2025