The Globe and Mail reports in its Thursday edition that top Bay Street economists say the Canadian economy is entering 2026 stronger than expected.
The Globe's Mark Rendell writes that U.S. tariffs are affecting some regions more severely than others, and efforts to adjust economic policy and boost business investment are still in early stages.
At the Economic Club of Canada's annual event in Toronto, the chief economists from Canada's six largest banks expressed cautious optimism about slow but positive economic growth, steady interest rates and hopes for rising stock markets, despite concerns of an artificial intelligence fuelled bubble.
A year ago, most were expecting President Donald Trump's protectionist policies to push the Canadian economy into a recession.
The economy was poised for about 1-per-cent growth last year, fuelled by broad tariff exemptions for Canadian exports, strong household spending from a rising stock market, government support measures and interest rate cuts.
U.S. threats have prompted a shift in economic policy, with Prime Minister Mark Carney and provincial leaders adopting a more business-friendly agenda focused on deregulation, infrastructure development and investment tax incentives.
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