Economic Directions

Check out the latest economic trends at a glance.

Economic growth Canada’s economic growth was stronger than expected in 2018, but the Bank of Canada (BoC) anticipates slower growth this year. In January, the Bank cut its 2019 forecast for Gross Domestic Product growth from 2.1 per cent to 1.7 per cent, citing low commodity prices and global trade conflicts.
Jobs

The unemployment rate hit a 40-year low in 2018, staying between 5.8 and 6.0 per cent throughout the year. Job growth is expected to be slightly slower in 2019.

Wages

Average wage adjustments in collective agreements came in at 1.3 per cent for 2018, lagging overall average wage growth which was 2.3 per cent.

Inflation Inflation is expected to remain close to 2.0 per cent throughout 2019 and 2020.
Interest rates

In January of this year, the BoC held its key lending rate at 1.75 per cent. The Bank was originally expected to increase rates up to three times over the course of 2019, but lower-than-expected oil prices, as well as a drop in household spending, may mean no interest rate hikes this year.


Source: CUPE National