From Financialpost · · 1m 10s
Canada's GDP Growth Slows to 0.9% in 2026
Canada's economic growth expected to drop to 0.9% in 2026 due to U.S. tariffs.
In brief
Canada's economic growth expected to drop to 0.9% in 2026 due to U.S. tariffs. Canada's economic growth is projected to slow to 0.9% in 2026 as U.S. tariffs and Canadian countermeasures impact the economy. Originally reported by Financialpost.
Canada's Economic Growth
Canada's economy grew by 3.3 per cent on an annualized basis in the second quarter of 2026, the fastest quarterly expansion since 2023.
PBO Projects Slower Growth
The Office of the Parliamentary Budget Officer reports Canada's real gross domestic product growth will slow to 0.9 per cent in 2026 and 1.5 per cent in 2027.
Tariff Impact on Economy
U.S. tariffs and Canadian countermeasures weaken the outlook further than expected in June, according to the report.
“The new U.S. tariffs and Canadian countermeasures weaken the outlook further than we expected in June”
Nominal GDP Growth
Nominal GDP is projected to grow by 5.6 per cent in 2026 and 3.4 per cent in 2027, reflecting rising prices rather than productivity.
Future Economic Outlook
Business investment is expected to pick up in 2028 as confidence recovers, with the economy returning to productive capacity by 2030.
The one thing
Canada's economic growth is projected to slow to 0.9% in 2026 as U.S. tariffs and Canadian countermeasures impact the economy.
