Porter Paints Bleak Picture of Canada's Trade Prospects

BMO's chief economist Douglas Porter has shared his thoughts on the outlook for Canadian food retailers in 2027, describing it as 'mixed.' In a recent interview with Canadian Grocer, Porter noted that while there have been some encouraging developments in terms of diversifying Canada's trade, both within and outside the country, progress has been slow.

Porter pointed out that the internal market has seen some signs of improvement, but it's unlikely to offset losses in the US market. He also cautioned that global diversification will be challenging for Canada due to the high value of certain goods. 'It takes time, especially to diversify abroad,' he said.

Looking ahead to 2027, Porter forecasts a stronger Canadian dollar, reaching approximately $0.75 by the end of the year. However, this is contingent on improvements in trade relations with the US, which may not be forthcoming. 'It's not going to write itself quickly,' he warned.