Canada Expected to Avoid Recession But Face Slow Growth Ahead Due to High Rates

Economists believe Canada will narrowly dodge a recession, but see weak near-zero growth ahead due to high interest rates.

GDP growth forecasts have been downgraded and are now well below population growth rate.

Bank of Canada expected to hold policy rate at 5% this week, before beginning rate cuts in Q2 2024.

Economists see inflation cooling to 2.1% in 2H 2024 from current 3.3%.

Signs of consumers feeling pinch as household consumption set to shrink 0.4% in Q1 2024.