Economies of Canadian Provinces Remain in a Holding Pattern

According reporting by the Financial Post (11-27-23) on new research released by The Conference Board of Canada, one of the country’s leading independent research organizations, Canadian provinces are feeling the pressure of restrictive interest rates, which have had a significant impact on consumer and business spending power.

The Canadian Conference Board is predicting real GDP growth in all of Canada to be only 0.9% for all of 2023, followed by an even weaker 0.6% predicted for 2024.

Adding additional background and analysis to the report, The Conference Board of Canada’s Director of Economic Forecast, Ted Mallett, said:

“Strong population growth across the country continues to be a major positive for the economy, helping to sustain employment and economic activity. Still, many households are feeling the pinch. High borrowing costs have added to inflationary pressures, resulting in sagging housing markets across most provinces.”