Canada's Economic Outlook Clouded by Trade Tensions
Canadian economists expect the Bank of Canada to keep its overnight rate at 2.25 per cent for the rest of the year, but uncertainty clouds the country's economic outlook due to ongoing trade tensions.
A recent report from Mortgage Professionals Canada found that more than one-third of Canadians need to rent out part of their home to afford ownership, up from 25 per cent in 2021. Homeowner Alexis Levenson is among them, having converted an unfinished basement into a rental unit to help pay off her mortgage.
The top federal tax bracket in Canada starts at $216,511 for a single filer and $433,021 for a married couple filing jointly, much lower than the US$640,600 threshold for single filers and US$768,700 for married couples in the United States. Economist Kim Moody argues that Canada's tax system is weak compared to other countries.
A Royal Bank of Canada report criticizes the Express Entry immigration system, introduced in 2022, for not meeting its intended purpose due to changes made during this period. This has led to a decrease in trust in the system and calls for rebuilding it to better serve Canada's economic goals.