Canada Likely to Avoid Recession, Begin Recovering in Second Half of 2024: Deloitte

Canada looks set to dodge a recession despite the ongoing downward pressure from higher interest rates, Deloitte Canada said in its economic outlook report. A number of worrisome trends are still weighing on the economy, Deloitte said, including sticky inflation, rising business insolvencies and increasing mortgage delinquencies. “Against this backdrop, we remain cautious about the near-term outlook,” the firm said in its report. “But based on its current trajectory, Canada appears likely to skirt a recession and even seems poised to begin recovering from its current slump in the second half of this year.” In an effort to fight breakneck inflation, the Bank of Canada raised the country’s key interest rate from near zero in March 2022 to the current five percent with a series of hikes....