Canada headed toward ‘moderate,’ ‘short-lived’ recession in 2023, RBC economists say

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Canada headed toward ‘moderate,’ ‘short-lived’ recession in 2023, RBC economists say
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RBC economists say soaring food and energy prices, rising interest rates and ongoing labour shortages will push the economy into a ‘moderate contraction’ next year

Canada is headed toward a recession in 2023, but it is likely to be short-lived and not as severe as prior downturns, according to a new report from RBC.

RBC says it expects the unemployment rate to reach 6.6 per cent next year, but doesn’t think it will take long to reverse some of that weakness in 2024 and beyond. RBC also expects house prices to fall 10 per cent in the year ahead, subtracting over $800 billion from household net worth.

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