Conference Board of Canada Forecasts 1.5% Growth in 2021 amid Tariff Uncertainty

January 24, 2025 TruthUSA

The Conference Board of Canada is predicting that the Canadian economy will grow by 1.5 percent in 2025 due to potential U.S. tariffs on Canadian exports and a decrease in immigration.

Cory Renner, the associate director of economic forecasting at the Conference Board, mentions that although declining interest rates have provided some relief, uncertainties surrounding trade and the effects of lower population growth are hindering growth projections for 2025.

The growth rate is expected to rise to 1.9 percent in 2026.

The report indicates that a weaker Canadian dollar and strong demand from the U.S. could benefit exporters, but the looming threat of tariffs creates significant uncertainty in the trade outlook.

Furthermore, a slowdown in population growth will have implications for Canada’s labor market.

President Donald Trump of the United States is threatening to impose 25 percent tariffs on imports from Canada and Mexico.