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Canada's Economy at Risk: Recession Fears Loom Amid Sluggish Growth

2/5/2026

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Summary

Story summary

Canada's economy faces potential recession as growth runs about 1% annually, even after rate cuts.
Rosenberg Research notes manufacturing and housing slump 5% and 2%, respectively, under weak demand.
Economists say current growth relies on low rates and immigration, which they deem ineffective.
They call for substantial tax cuts and regulatory reforms to spur investment and productivity.
Canada has experienced flat GDP growth, signaling a precarious economic future.

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Story summary

Canada's economy faces potential recession as growth runs about 1% annually, even after rate cuts.
Rosenberg Research notes manufacturing and housing slump 5% and 2%, respectively, under weak demand.
Economists say current growth relies on low rates and immigration, which they deem ineffective.
They call for substantial tax cuts and regulatory reforms to spur investment and productivity.
Canada has experienced flat GDP growth, signaling a precarious economic future.