Canada's Economy Faces Rising Risks: RBC Warns of Sector Strains
The Canadian economy is facing mounting economic risks and sector strains, according to RBC's latest economic outlook. The bank identifies rising trade uncertainty, high household debt, and uneven regional performance as key challenges for the coming quarters.
RBC notes that lingering global trade tensions have dampened business investment and clouded the outlook for manufacturing and resource-dependent regions. Elevated interest rates have yet to fully transmit through the economy, keeping borrowing costs high for consumers and smaller firms.
The bank highlights sticky inflation in shelter and services as a major concern, eroding real household purchasing power and contributing to a slowdown in consumer spending. This has historically been a primary growth engine for Canada.