The Canadian economy started off the year with a remarkable recovery from the COVID-19 pandemic, but heading in 2023, high interest rates are expected to take a significant toll.
"2022 was quite a rollercoaster," said Randall Bartlett, senior director of Canadian economics at Desjardins.
"We're really expecting to see the rubber meet the road in terms of the implications of interest rate hikes in the first half of next year," Bartlett said. Inflation peaked at 8.1 per cent in June and has been steadily declining since. Last month, the annual inflation rate fell to 6.8 per cent, showing slight but positive progress.
As the economy takes a turn, labour groups in particular have been concerned about the effect of interest rate hikes on employment. One factor that will influence the depth of the economic downturn is whether the Bank of Canada will continue to raise interest rates.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Fantastic' core players re-up with Cavalry for CPL campaignThe winning culture of Cavalry FC should continue into the 2023 Canadian Premier League campaign.
Read more »
'Fantastic' core players re-up with Cavalry for CPL campaignThe winning culture of Cavalry FC should continue into the 2023 Canadian Premier League campaign.
Read more »
Spending on EVs, inventory shortages weigh on 2023 Canadian auto showsEven with COVID-19 restrictions lifted, several regional events have been canceled; larger shows are toughing it out, but they continue to hemorrhage automakers.
Read more »
Slowing rates hikes could spark REIT rebound in 2023, Hazelview report saysTransparency around interest rates is expected to positively change the REIT landscape in 2023. Find out more.
Read more »
Where could mortgage rates - fixed and variable - head in 2023?Could borrowers hold out at today’s rates, which remain near 14-year highs?
Read more »