Budget Watchdog Predicts ‘Tepid’ Growth in Canadian Economy for Remainder of 2024

Budget Watchdog Predicts ‘Tepid’ Growth in Canadian Economy for Remainder of 2024
Parliamentary Budget Officer Yves Giroux waits to appear before the Senate Committee on National Finance, in Ottawa on Oct. 17, 2023. The Canadian Press/Adrian Wyld
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The Parliamentary Budget Office (PBO) predicts Canada’s economy will remain weaker for the rest of 2024, with higher interest rates continuing to put a damper on economic growth.

Despite recent rate cuts by the Bank of Canada, which reduced its key interest rate from 5 percent to 4.25 percent from June to September, the PBO said the elevated rates “will continue putting downward pressure on consumer spending and investment.”