The Bank of Canada has expressed confidence that inflation will continue to move towards the 2% target. Canadian consumers will require further rate cuts and more time to alleviate pressure from their large debt-loads. The Trans Mountain Pipeline and LNG Canada project will create a positive backdrop for Canadian oil and natural gas.
Economic growth is expected to continue to slow in 2024. Higher interest rates are anticipated to weigh more heavily on Canadian consumers and overall economic activity in 2024. Higher rates have had a disproportionately negative impact on Canadians due to higher consumer debt levels and shorter duration mortgages compared to the U.S. Unemployment is also expected to continue to increase at a slightly higher pace compared to 2023.
