Canada Economy Expected to Rebound Amid Trade War Risks

Canada's economic growth is expected to rebound in the latter half of the year, but risks remain on the horizon. According to Signal49 Research, the country's economy will grow 1.4% in 2026.

The trade war remains a significant risk to Canada's economic growth prospects, with Forbes saying 'the longer it gets drawn out, the more it escalates, the worse the outlook is going to be for Canada.'

Newfoundland and Labrador is expected to lead the country's economic expansion for the second year in a row, driven by higher crude prices and offshore oil projects. The province's economy will expand 3.7% in 2026.

However, longer-term growth will be constrained by demographic pressures, with Forbes saying 'oil production has really been the driver of Newfoundland and Labrador this year' but also noting that 'over the longer term it is one of the weakest-growth provinces because it has a more senior population and trouble attracting migrants.'