Deloitte Canada has issued a summer economic outlook that projects gross domestic product growth of 0.7% for 2026, signaling a modest recovery after a sluggish start to the year.
The consultancy stated there is "little evidence" of a recession taking hold, despite several factors weighing on economic activity in the first quarter.
The forecast anticipates a rebound toward the end of the year, with growth expected to accelerate to 2% in 2027.
The forecast anticipates a rebound toward the end of the year, with growth expected to accelerate to 2% in 2027.
This trajectory suggests that while near-term momentum remains soft, the underlying structure of the Canadian economy is not contracting at a rate that would define a technical recession.
The outlook comes as markets digest mixed signals from North American economies.
While US Treasury Secretary Scott Bessent recently projected a return to 3% annual growth in the United States by late 2026, citing geopolitical de-escalation as a catalyst, Canada’s path appears more gradual.