Canada to Barely Escape Recession as Higher Rates Will Stick, Economists Say

Canada will dodge a recession by a narrow margin, economists say, but elevated interest rates will keep economic growth near zero for a while.

Gross domestic product will be flat this quarter and grow at an annualized pace of just 0.3% in the first quarter of next year, according to the median response in a Bloomberg survey of economists. Both figures are a downgrade from the previous month’s survey, and project growth that’s well below the rate at which Canada’s population is increasing.