Check out the latest economic trends at a glance.
Canada’s economy is expected to grow by at least 2.0 per cent in 2018 and taper down to 1.8 per cent in 2019. While Trump’s trade wars could have a much larger impact going forward, Canada’s economic growth has been stronger than expected this year, thanks to stronger employment and wage growth.
The number of jobs in Canada is expected to increase by 1.2 per cent this year and by 0.9 per cent in 2019. The jobless rate is expected to average 5.8 per cent in both years.
Base wage increases in major collective agreements are moving up following a dismal average of just 0.8 per cent in the first quarter and now average 1.3 per cent for the year. However, this remains below inflation and below economy-wide increases in hourly wages.
Consumer price inflation accelerated to 3.0 per cent in July due to rising fuel prices and is expected to average 2.4 per cent this year and 2.2 per cent in 2019, with a soft dollar and tariffs keeping prices up.
The Bank of Canada has already hiked its key lending rate three times since last summer, bringing it up to 1.5 per cent. Another hike is expected, partly so the Bank has more leeway to cut rates if needed in the future.