January 7, 2026
RED FM News Desk
According to a new economic report, Canada’s economic growth rate is projected to dip to 1.5% this year (2026), down from the 1.7% recorded in 2025. Despite the slight deceleration, Deloitte Canada’s Chief Economist, Dawn Desjardins, expresses “cautious optimism” that the economy will regain momentum by the second half of the year.
Desjardins identified trade and investment as the two pivotal trends to watch in 2026. A major factor on the horizon is the upcoming review of the Canada-United States-Mexico Agreement (CUSMA) in July. Additionally, the federal government’s latest budget aims to stimulate billions of dollars in private-sector investment, which is expected to play a crucial role in stabilizing the fiscal landscape.
The CUSMA review is being viewed as a critical juncture for the Canadian economy. While Desjardins acknowledged that potential changes limiting or eliminating access to the U.S. market pose a significant risk, her baseline forecast suggests that Canada will successfully maintain its favorable trade relationship with the United States.
The report also suggests that the Canadian economy may be reaching a turning point in terms of business investment. Companies are beginning to find greater clarity, bolstered by federal support particularly in the infrastructure and natural resource sectors. In the short term, increased government spending on defense and targeted aid for industries affected by U.S. tariffs are expected to provide further economic cushions.
Despite a sluggish start to 2026, Desjardins remains confident in a late-year recovery. “Overall, the growth rate will likely be slightly slower compared to 2025,” she noted. “However, if that momentum builds in the second half of 2026, it will set a very strong stage for 2027.”
Loading ...
