BMO Economics Outlines Reasons For Optimism on Canadian Economy
Despite the CUSMA trade agreement now being subjected to annual reviews after the US refused to sign a 16-year extension, there are good reasons to be optimistic on the Canadian economy in the second half of this year, and into 2027, especially since growth seems to be recovering after stalling in the previous four quarters, BMO Economics wrote in a note. Real GDP surprised on the high side in April with a 0.5% bounce, and early indications point to additional gains in May and June, said senior economist Robert Kavcic. "This suggests that growth was close to 2% in Q2, after dipping 0.1% in the prior year (including, famously, small declines in the two previous quarters)," Kavcic wrote. The TSX has also churned out an 11% advance so far this year and was again nearing a record high by week's end, he pointed out. "What's particularly noteworthy is the sustained nature of the rally. To pick but one metric, the index is up by almost 60% from two years ago, or nearly 55% adjusted for inflation. That latter increase has been topped only three times in the past 65 years-in the late 1970s commodity boom, in the late 1990s tech boom, and in the rebound from the 2009 crash. At the.
Despite the CUSMA trade agreement now being subjected to annual reviews after the US refused to sign a 16-year extension, there are good reasons to be optimistic on the Canadian economy in the second half of this year, and into 2027, especially since growth seems to be recovering after stalling in the previous four quarters, BMO Economics wrote in a note.
Real GDP surprised on the high side in April with a 0.5% bounce, and early indications point to additional gains in May and June, said senior economist Robert Kavcic. "This suggests that growth was close to 2% in Q2, after dipping 0.1% in the prior year (including, famously, small declines in the two previous quarters)," Kavcic wrote.
The TSX has also churned out an 11% advance so far this year and was again nearing a record high by week's end, he pointed out. "What's particularly noteworthy is the sustained nature of the rally.
To pick but one metric, the index is up by almost 60% from two years ago, or nearly 55% adjusted for inflation.
That latter increase has been topped only three times in the past 65 years-in the late 1970s commodity boom, in the late 1990s tech boom, and in the rebound from the 2009 crash.
At the.