Canada's economy is facing tough times: the small business and consumer confidence indices are hitting record lows while inflation reignites amidst rising trade tariffs.
Decline in Business Confidence Index
The Small Business Confidence Index in Canada has sharply declined by 60% in a few months, reaching 25 points—the lowest point in history. Even in the 2008 financial crisis, confidence levels were 10 points higher.
Inflation and Housing Market Challenges
Consumer sentiment in Canada has hit an all-time low, significantly lagging behind even the U.S. levels from 2008. Inflation expectations are at unprecedented highs, while housing prices have surged 300% since 2000. Canada faces a structural housing deficit of 250,000 units quarterly.
Effects of Trade War and Inflation
The trade war with the U.S. is negatively affecting Canada's economy, leading to GDP decline, rising inflation, and widespread layoffs. Tariffs are exacerbating the situation in goods and employment within sectors such as oil, mining, manufacturing, and agriculture.
Canada's economy continues to face severe challenges—from trade tensions with the U.S. to domestic inflation and housing shortages. These factors are putting significant pressure on businesses and consumers, causing downturns in various economic sectors and increasing uncertainty on the political front.
