Economic Growth

After slumping into recession in the first half of 2015, Canada’s economy started to expand again mid-year. Growth remains slow. It is expected to come in just slightly above one per cent this year and close to two per cent in 2016.


Job growth has been meager this year, though it picked up in recent months. The unemployment rate is expected to average 6.9 per cent in both 2015 and 2016—no better than 2014.


Inflation has averaged 1.1 per cent so far this year. It’s expected to stay there in 2015 before rising to an average of 1.9 per cent in 2016.


Base wage increases in major collective agreements averaged just 1.6 per cent in the first nine months of 2015, with public sector increases slightly below the 1.7 per cent average in the private sector.

Interest Rates

When will rates rise? With slow economic growth and low inflation, the day of reckoning keeps being put off. Now it isn’t expected until late 2016 or even in 2017, but it could come sooner if the economy strengthens earlier.