Global economic advisory firm expects downturn in Canadian economy to continue

A global economic advisory firm says in an updated forecast that Canada’s plans to ramp up defence spending will help to lift the economy this year but it won’t be enough to pull it out of a downturn.

Oxford Economics expects the downturn that began last quarter to continue.

The firm says that “Canada’s economy has slipped into a trade war-induced recession that will likely last through the end of 2025 unless a deal is reached to immediately reduce U.S. tariffs.”

It adds the economy could lose 140,000 jobs through the rest of the year as sectors beyond industries directly harmed by the tariffs start to see layoffs.

With files from The Canadian Press.

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