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Canada's Economy Slows: 2026 Growth Projected at 1.5%

1/7/2026

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Story summary
  • Deloitte projects Canada’s economy will slow in 2026 to 1.5% growth, down from 2025's 1.7%, due to trade wars and tariffs.
  • The Canada-U.S.-Mexico Agreement review in July 2026 will shape trade relations.
  • Infrastructure and defense spending aims to stimulate growth, but immediate gains may be limited.
  • The October GDP report shows a 0.3% contraction, with declines in manufacturing, especially wood products.