{"id":22136,"date":"2023-09-19T23:33:56","date_gmt":"2023-09-20T06:33:56","guid":{"rendered":"https:\/\/essential.construction\/news\/canada-set-to-avoid-recession-this-year-rsm\/"},"modified":"2023-09-19T23:33:57","modified_gmt":"2023-09-20T06:33:57","slug":"canada-set-to-avoid-recession-this-year-rsm","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/canada-set-to-avoid-recession-this-year-rsm\/","title":{"rendered":"Canada set to avoid recession this year: RSM"},"content":{"rendered":"

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With the Bank of Canada recently holding its September interest rate, global provider of assurance, tax and consulting services RSM Canada is suggesting that Canada will likely avoid a recession this year.<\/p>\n

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PHOTO: David Kennedy<\/p>\n<\/div>\n

The global provider of assurance, tax and consulting services, recently shared its latest edition of The Real Economy Canada \u2013 a quarterly report that provides Canadian businesses with analysis and insights on the country\u2019s complex economic conditions. It uses the term \u201creal economy\u201d in reference to the segment of the economy that produces the goods and provides the services we rely on every day.<\/p>\n

With the Bank of Canada recently holding its September interest rate, RSM Canada\u2019s latest report examines how the country\u2019s economy is steadily cooling after months of higher inflation, however initial predictions of a recession this year are now unlikely and more feasible in the second half of 2024. With these conditions in mind, the company says the earliest opportunity for interest rate cuts will be the second quarter of 2024.<\/p>\n

The report also explores a key measure that Canada can explore to drive more productivity and growth \u2013 capitalizing on its recent policy to increase immigration by tapping into the underutilized skilled labour coming into Canada.<\/p>\n

According to the report\u2019s updated economic forecast, Canada\u2019s recession probability over the next 12 months has lowered to 60 per cent from 75 per cent, and the Canadian economy will remain steady in the last quarter, with a slowdown continuing into the first half of next year.<\/p>\n

And while job vacancies remain elevated above pre-pandemic levels, they have decreased to the lowest level since May 2021. That decline indicates a cooling labour market and is a trend the report authors expect will continue through the year\u2019s end.<\/p>\n

\u201cThe Canadian economy has displayed remarkable resilience this year, defying expectations of a downturn. While we may muddle through the rest of the year with slower growth, Canada will likely avoid a recession this year,\u201d stated Tu Nguyen, an economist with RSM Canada. \u201cIn addition, a 40 per cent probability of a soft landing is promising thanks to our strong labour demand, healthy consumer spending and a housing market that is still robust. All these factors are in part fueled by Canada\u2019s ambitious immigration policy and healthy household savings from the pandemic.\u201d<\/p>\n

The Real Economy Canada report can be downloaded on the RSM Canada webpage.<\/p>\n

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www.rsmcanada.com<\/a><\/p>\n<\/p><\/div>\n