Canada's Economic Growth Expected to Rebound Despite Ongoing Risks

Canada's economic growth is expected to rebound later this year and into 2027 as hiring activity strengthens and business confidence recovers, according to a report by Signal49 Research.

The think tank predicts that stronger public and private investments, steady gains in consumer spending, and an easing of Canada-U.S. trade tensions will drive the momentum.

However, escalating tariffs, the ongoing conflict in the Middle East, and looming demographic pressures create uncertainty and significant headwinds for the Canadian economy, the report warns.

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, with an estimated 3.7 per cent growth in 2026.