Economic Growth

It seems like every year we’re told stronger economic growth is just around the corner. The economy was supposed to grow by 2.5 per cent in 2014, but so far it’s averaged just 2.3 per cent, with a slight increase to 2.5 per cent expected in the next two years.


Canada’s job situation finally showed some life with a reported 117,000 jobs created in September and October, but the unemployment rate is expected to average seven per cent in 2014 and only decline to 6.8 per cent in 2015.


Consumer price inflation clocked in above two per cent from April to September, but with the drop in oil prices it will likely decline a bit, averaging 1.9 per cent for 2014 with a similar rate in 2015.


Major public sector collective agreements settled in the first nine months of 2014 provided average base wage increases of 1.5 per cent over the life of the agreements. It’s a different story for private sector workers, where wage increases averaged 2.3 per cent.

Interest Rates

The Bank of Canada is expected to keep its target interest rate steady at 1.0 per cent until late 2015, but if the economy strengthens, longer-term bond and mortgage rates may rise before then.