Walking on a tightrope: Deloitte predicts downturn for Canadian economy – National [Video]

The Canadian economy is “walking on a tightrope” and is likely to experience an economic downturn later in the year, an economic outlook by Deloitte Canada is predicting.

“Business confidence is cooling. Investments are stalling. Canada’s economy is walking on a tightrope, but this may be our moment to build a more resilient, productive, and diversified future,” Deloitte Canada said in the spring edition of its economic outlook.

According to the report, Canada’s economy is expected to experience a “modest downturn” over the second and third quarters of the year.

However, strong growth at the end of 2024 will keep annual growth for that year in positive territory, the report said, forecasting a growth rate of 1.2 per cent.

The threat posed by U.S. President Donald Trump’s tariffs is the chief reason for Canada’s gloomy economic outlook.

“Five years ago, we found ourselves speaking about the unprecedented uncertainty as the COVID-19 pandemic began …