Economic Growth

Despite Canada’s economy slumping into recession again in the first half of 2015, forecasters still think the economy will eke out GDP growth of about one per cent this year and slightly more than two per cent in 2016.


Job growth has been meagre again this year. Employment is expected to increase by just 0.8 per cent—half the rate of the last two decades—leaving the unemployment rate for 2015 at 6.8 per cent, barely unchanged from last year.


With the drop in oil prices but rise in food prices, inflation has averaged just one per cent this year but is expected to rise to about two per cent in 2016.


Base wage increases in major collective agreements averaged 1.7 per cent in the first half of this year. This was higher than the rate of inflation during that period, but less than what inflation is expected to average over the life of these agreements. 

Interest Rates

Economic weaknesses mean there is unlikely to be any increase in short-term interest rates and little increase in long-term rates for at least a year, following the Bank of Canada’s rate cut in July.