Canada’s economy is “walking on a tightrope”

A consensus can be drawn from recent economic data that the Canadian economy is in a precarious state. For a decade the Liberals’ big spending, big government approach to managing the economy has left the country in a weakened condition to respond to, perhaps pivot from, the trade threats posed by the United States. Fresh from their electoral victory it is the same Liberals who must find the country’s footing in an increasingly difficult financial situation.

Over the last two years there have been a steady stream of reports documenting Canada’s sagging economic performance that has exacerbated Canadians’ anxieties about their finances. Nearly one in two Canadians (45 per cent) report that last year’s rising prices greatly affected their ability to meet day-to-day expenses (12 per cent higher than what it was in 2022), according to Statistics Canada. Last year, BDO Debt Solutions reported that inflation and the rising cost of living remain the top concerns for 40 per cent of Canadians, …