Latest economic trends at a glance
|Canada had strong economic growth of over 4.0 per cent in the first half of 2017, but is expected to average 3.1 per cent for the year, followed by 2.2 per cent growth in 2018 and 1.7 per cent in 2019.
|This year’s strong job growth of 1.4 per cent is expected to moderate to 1.1 per cent next year. But it will still be strong enough to bring the unemployment rate down to an average of 6.1 per cent next year, and to 6.0 per cent in 2019.
|Collective agreements signed in the first nine months of this year provide average base wage increases nationally of 1.7 per cent. Pay raises for public sector workers also averaged 1.7 per cent. The average increase for private sector workers was 2.0 per cent.
|The cost of living, or consumer price inflation, is now forecast to average just 1.5 per cent this year. It will rise to 1.8 per cent in 2018, and to 2.0 per cent in 2019.
|The Bank of Canada has already hiked its key lending rate twice this year, to 1.0 per cent. Forecasters expect rate hikes to continue for the next two years until the lending rate reaches 2.0 to 2.5 per cent. This will bring longer term bond yields and mortgage rates, up by a half to a full percentage point.