Bracing for a Slowdown: Canada’s Three-Year Business and Industry Outlook

Many businesses anticipate a recession in Canada within the next year, derailing their production and investment plans.

Elevated oil prices mean the energy sector will lead in investment over the short term.

Industries hit hard over the past two years—such as transportation and manufacturing—are poised for increased investment, though challenges remain.

Softer domestic and global demand and ongoing supply chain problems will continue to temper output in several manufacturing sectors throughout 2023.

Commercial services will face competing forces over the short term, where the lifting of most pandemic-related restrictions will help some industries, but higher inflation will hinder others.

Fiscal constraints at all levels of government will soften output growth for the public sector for most of the forecast period.