Economic Growth

Another quarter, another downward revision. Economic growth is now forecast to average 2.0 per cent at best this year and 2.2 per cent in 2016, down from 2.6 and 2.4 per cent forecast from last September.


With little job growth since the start of 2015, there’s been no decline in the unemployment rate so far this year. The jobless rate is expected to average 6.8 per cent this year and to decline only slightly in 2016.


Inflation has averaged close to one per cent so far this year and that’s what it’s expected to be for 2015, with the 2016 average forecasted at 2.2  per cent.


Base wage increases in major agreements averaged 1.9 per cent in the first quarter of 2015. Public sector workers averaged 1.8 per cent, slightly lower than the private sector average of 2.1 per cent.

Interest Rates

The Bank of Canada is now expected to hold its key interest rate at 0.75 per cent until mid-2016, while longer-term rates are forecast to gradually increase by 100 basis points (one percentage point) over the next year.