Economists have slashed Canada's 2026 growth forecast to 0.7%, down from a previous forecast of 1.2%. This change is due to a surprise economic slump at the start of the year, with the economy shrinking 0.1% on an annualized basis in the first quarter.
The forecast revision is largely attributed to weaker growth, partly driven by an unexpected drop in federal defense spending and an abrupt slowdown in immigration of non-permanent residents. Despite this, analysts have revised their forecasts higher for the second quarter, predicting a 1.9% pace of expansion.
For Calgary buyers, sellers, and investors, this forecast revision may lead to a more cautious approach in the real estate market. With a potentially slower economy, housing prices and investment opportunities may be impacted, making it essential to stay informed and adapt to the changing market conditions.
Source: News