Economic Growth Prospects for Canada

The Canadian economy is projected to potentially lead the G7 in growth as it heads into 2025, driven by lower inflation rates below the 3% threshold and recent interest rate cuts by the Bank of Canada. These changes are expected to provide Canadians with more affordable mortgages and improved loan conditions, offering some financial relief. However, the labor market is experiencing strain, and the effects of a persistent cost of living crisis continue to be a concern. Various factors, such as lower immigration targets and economic uncertainties, could impact GDP growth, raising fears of personal financial hardships including job losses and increased mortgage struggles.