Latest economic trends at a glance

Economic growth

Another quarter, another downgrade. Forecasters now expect Canada’s economy to eke out growth of just 1.3 per cent this year and two per cent 
in 2017.


Despite slow job growth, the unemployment rate hasn’t increased much. 
It’s expected to average seven per cent this year and decline only slightly 
to 6.9 next year. 


Consumer price inflation is forecast to average 1.7 per cent this year and 
to rise by about 2.1 per cent in 2017. 


Wage increases in major collective agreements settled in the first half of 2016 averaged just 1.2 per cent, similar to 2015 and a paltry 0.4 per cent average for the first year of these agreements. 


Interest rates remain close to rock bottom levels with longer term rates dropping in recent months. Sustained increases aren’t expected until late 2017 at the earliest.