This quarterly economic forecast provides highlights of the Provincial Outlook report, which presents the short-term outlook for Canada’s provinces.
Economic recoveries in the provinces are entering a new phase as they re-establish pre-pandemic benchmarks and begin to close their remaining output gaps.
Shifts are reflected in government policies as they switch from broad-based income supports and business restrictions to vaccine mandates and targeted approaches.
Built-up savings will aid consumer spending plans—particularly in services—in 2022, which, supported by strong commodity prices, will help drive a return to business investment growth. Although demand will be there, strained supply chains and resurgent inflation will hold back progress somewhat.