In 2022, the question on the minds of many Canadians was “Is the pandemic over?”
Wondering what to expect in 2023?
While social conditions are difficult to forecast, according to the Business Development Bank of Canada (BDC) the economic outlook for 2023 is “Cause for caution, not alarm.”
Despite the bleak economic outlook in recent months, the BDC says a recession is still avoidable for the Canadian economy, however, the year “will be shaped by growth below the economy’s potential and a great deal of uncertainty.”
The BDC says the slowdown is needed to curb inflation, as the risk of doing too little outweighs the risk of doing too much too fast.
According to the BDC, key statistics for 2023 are: Canada’s GDP growth (0.5 per cent); key interest rate peak (4.5 per cent); and expected wage growth (four per cent).