Deloitte slashes 2027 economic outlook by 20% as trade tensions worsen
Deloitte has downgraded its 2027 economic growth forecast for Canada by 20% due to escalating trade tensions and tariffs with the United States. The report highlights concerns regarding business confidence and consumer spending in the face of these trade barriers.
Why it matters
Economic outlook revisions from major firms influence market sentiment and policy discussions regarding international trade relations.
A new report released Tuesday from Deloitte says the Canadian economy performed better than expected so far this year, but that momentum is losing steam as worsening trade tensions between Canada and the U.S. led the firm to change its outlook for 2027.
The firm dropped its economic growth projection for next year by 20 per cent, warning that it expects recent trade flare-ups “to become more pronounced in 2027.”
Deloitte’s fall economic outlook report, titled Weathering change: Canadian businesses navigate renewed uncertainty, was released Tuesday, and on the same day a U.S. import ban on Canadian alcohol, dairy products and motorcycles took effect.
GDP is projected to rise a total of 1.6 per cent next year, according to Deloitte’s estimates, which is a downward revision by 0.4 per cent from its last report .
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