Small font size A Larger text size A Largest text size A

Deloitte Sees Canada GDP Growing 1.3% in 2025, 1.7% in 2026, Expects BoC Rate Cut to 2.25%

BY MT Newswires | ECONOMIC | 09/29/25 11:02 AM EDT

11:02 AM EDT, 09/29/2025 (MT Newswires) -- Deloitte Canada expects the economy to "limp along" in Q3 but avoid a technical recession, with growth running below potential.

Canada's gross domestic product fell 1.6% year over year in Q2.

Stronger gains are expected in 2026 as lower interest rates, limited tariff pass-through to prices, and government stimulus create conditions for a rebound in business investment, the firm said in a report Monday.

This base case assumes Canada will keep its exemption from U.S. tariffs on CUSMA-compliant exports, Deloitte said.

Overall, Deloitte Canada estimates real GDP to grow 1.3% this year and 1.7% in 2026. It also predicts the Bank of Canada to lower its policy rate by 25bps to 2.25%.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

Asia shares ease as Fed cut priced, guidance uncertain BY Reuters |ECONOMIC 09:35 PM EST
GLOBAL MARKETS-Asia shares ease as Fed cut priced, guidance uncertain BY Reuters |ECONOMIC 09:29 PM EST
China's deflationary strains persist even as consumer inflation hits 21-month high BY Reuters |ECONOMIC 09:19 PM EST
Japan's Topix gauge touches record high in tentative trade?before Fed, BOJ BY Reuters |ECONOMIC 09:02 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article