A majority of economists forecast a short-lived technical recession in Canada, according to a new survey.
According to a poll of 26 economists undertaken by Bloomberg News, Canada’s gross domestic product (GDP) is expected to record two consecutive quarters of decline at the start of next year (2023), which is the technical definition of an economic recession.
Economists who were polled said that Canada’s economy is likely to contract by an annualized 0.5% in the first three months of 2023 and decline by 0.6% in the second quarter of the year.
Most economists are forecasting that Canada’s economy will return to growth in the second half of next year and grow an average of 0.6% in 2023, followed by 1.7% growth in 2024.
Economists also anticipate that the Bank of Canada will conclude its current monetary tightening cycle early next year, with the trendsetting overnight interest rate hitting 4.25%, up from 3.75% currently.
The survey took place between November 4 and 11 of this year.
