Rosenberg Research Sees Improving Long-Term Economic Prospects for Canada

BY MT Newswires | ECONOMIC | 11/26/25 10:36 AM EST

10:36 AM EST, 11/26/2025 (MT Newswires) -- Rosenberg Research has been downbeat on the Canadian economy and Canadian dollar (CAD or loonie) for a long time, but some of the dark clouds are starting to brighten.

Rosenberg Research still sees weak growth for the first half of 2026, as uncertainty and adjustments are continuing, and the Bank of Canada easing cycle will take a bit more time to flow through to economic stimulus.

The department of finance gave an official forecast of +1.2% real gross domestic product growth for 2026, even with the modest level of fiscal stimulus in the recently passed Liberal budget. But once the final inflation issues are worked out of the system, and favorable stimulus and investment start to hit the economy by mid-2026, the country could see a case for a rebound in Canada's growth rate -- returning to a potential growth rate in the 1.6% range or even higher in 2027 and beyond, stated Rosenberg.

Its view is based on three pillars: an improving macroeconomic policy outlook, the prospect of renewed export growth, and emerging strengths in key economic sectors -- such as manufacturing, liquified natural gas (LNG) and rare earths.

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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.

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