Canada has experienced sluggish economic growth in 2023, owing to rising prices and higher credit costs, which had a direct impact on the investment and consumption channels, despite the benefits of the country’s growing population. Furthermore, one cannot expect a significant improvement over the short run. Canadian households are amongst the most indebted in the world. Admittedly, their level of net wealth contributes to offset this fact, but it still implies an increased vulnerability against the backdrop of monetary tightening and a deteriorating labour market
Canada is considered as one of the most stable and resilient economy. Nevertheless, it was not spared by the COVID-19 outbreak. GDP fell by 5.3% in 2020, not only because of lockdowns that depressed activity in services, but also as consequence of the fall in oil prices (Canada ranks fifth worldwide among oil exporter countries). The shock was short-lived, and Canada was among the first to benefit from the recovery in world trade and commodity markets.
