According to Deloitte Canada, the Canadian economy will resume growing in the second half of 2024, with interest rates slashed as soon as this spring.
According to the firm’s economic forecast report, GDP will be slow throughout the first half of the year as the consequences of rising interest rates work their way through the system.
After a heavy-handed hike campaign to combat inflation, the Bank of Canada maintained its reference rate at 5% in December.
According to Deloitte, inflation remains uncomfortably high at 3.1% in November, but the central bank is unlikely to raise rates more.
However, Deloitte Canada chief economist Dawn Desjardins believes interest rates will not revert to pre-pandemic levels.
According to Desjardins, economic and employment market momentum will pick up in the second half of 2024 as confidence begins to return.