Demand Is Shifting Gears: Canada’s Aggregate Demand Outlook to 2045

This annual economic forecast presents Canada’s long-term aggregate demand outlook.

Document Highlights

An aging population, as well as the shift to clean energy, will reshape Canadians’ spending habits.

Slowing growth in household formations will eventually erase current residential shortages and trim housing starts.

Business investment will accelerate over the long term as companies ramp up capital spending on new technologies to deal with labour shortages and stronger competition from abroad.

The huge deficits run up by governments during the pandemic will weigh on every budget decision over the long term, resulting in noticeably slower spending over the next two decades.

Solid U.S. demand and a competitively low Canadian dollar trading below US$0.80 will provide a sound foundation for exports over the long term.