Housing affordability, economic uncertainty to define Canada's landscape in 2024
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Interest rates and the housing market will be top of mind in 2024. Many Canadians will see higher mortgage payments as rates reset, slowing consumer spending. But the Bank of Canada may start cutting rates to avoid recession.
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Productivity and economic growth remain weak in Canada compared to other countries. Business investment is lagging, constraining productivity improvements. Population growth is outpacing housing construction, worsening affordability.
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Financial markets face uncertainty in 2024. While hopes for a "soft landing" persist, cracks are appearing in credit markets. Equities seem "priced to perfection" despite risks. The Bank of Canada's rate cuts could spark market volatility.
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Immigration and temporary migration set new records in 2023. But Canada's absorptive capacity is being tested, risking an undocumented underclass. The pace of population growth strains housing and public services.
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AI adoption is accelerating with tools like ChatGPT. But measurable economic impacts remain limited for now. Still, preparatory policy frameworks are needed to encourage responsible use and limit downsides. Tracking indicators of adoption and impact will be crucial.