Check out the latest economic trends at a glance.
Economic growth | Canada’s economy is now expected to grow by 2.0 per cent this year and by 1.8 per cent in 2019 following strong growth of 3.0 per cent last year. |
Jobs | The number of jobs in Canada is expected to increase by 1.3 per cent this year and by 0.9 per cent in 2019. The jobless rate is expected to be 5.8 per cent in both years, the lowest it’s been since 1974. |
Wages | Despite a historic low in the jobless rate, base wage increases in major collective agreements settled in the first quarter of 2018 averaged just 0.8 per cent, well below the rate of inflation. |
Inflation | Consumer price inflation has been pushed higher by rising fuel prices. It is expected to average 2.3 per cent this year, the highest in seven years, and 2.1 per cent in 2019. However, measures of underlying inflation remain close to the Bank of Canada’s target rate of 2.0 per cent. |
Interest rates | The Bank of Canada has already hiked its key lending rate three times in the past year, bringing it up to 1.25 per cent, from 0.5 per cent last summer. The bank is keeping the rate stable for now with Canada in a “sweet spot” of low unemployment, decent growth, and inflation at target rates. The central bank’s lending rate is expected to rise by another full percentage point over the next year with longer-term mortgage rates up by half a percentage point. |