Reported 1 day ago
Bank of Canada Governor Tiff Macklem has indicated that ongoing trade tensions with the U.S. are likely to cause a permanent reduction in Canada's economic output by 2.5%, with a potential 3% drop over two years due to tariffs. Despite the uncertainty surrounding tariffs, he emphasized that the impact on Canadian exports and consumer demand would be significant, leading to decreased household income and increased consumer prices. The bank cautions that persistent tariffs would halt any economic recovery typical after shocks like the pandemic, with investment spending projected to fall by almost 12% by 2026.
Source: YAHOO