Overview

• The Bank of Canada reports 32% of Canadian businesses now expect a recession within the next year, up from 15% in previous quarters.
• Consumer sentiment has worsened significantly, with 66.5% of Canadians anticipating a recession, a 20-point increase from the last survey.
• U.S. tariffs and retaliatory trade measures are driving widespread uncertainty, weakening export sales and disrupting business planning.
• Many Canadian firms are delaying investments and hiring decisions, citing unclear economic conditions and rising input costs.
• The Bank of Canada recently cut its key interest rate to 2.75% and signals potential further reductions to counteract trade-related pressures.