Canada's Economy Expected to Rebound Amid Trade Uncertainty

Canada's economic growth is expected to rebound in the latter half of this year and into 2027, driven by strengthening hiring activity and business confidence. According to Signal49 Research, a think tank based in Ottawa, this momentum will be supported by increased public and private investments, steady gains in consumer spending, and an easing of Canada-U.S. trade tensions.

However, the organization also noted that escalating tariffs, the ongoing conflict in the Middle East, and looming demographic pressures create uncertainty and significant headwinds for the Canadian economy. Richard Forbes, principal economist at Signal49 Research, said: 'Business investment has been really weak in Canada recently, but we're seeing some signs that that could be turning around.'

The province's economic growth varies considerably, with Newfoundland and Labrador expected to lead the country's expansion for the second year in a row, driven by higher crude prices and offshore oil projects. Ontario, on the other hand, is expected to post the softest growth this year, with its economy expanding just 0.2%.