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RBC’s New Canadian Monthly Macroeconomic Series
This is the first edition of The Economic Pulse – a monthly series that will provide macroeconomic insights and analysis from RBC’s Chief Economist, Craig Wright and Deputy Chief Economist, Dawn Desjardins.
In this edition, we focus on the Canadian economic outlook for Q4 and into 2021. A number of factors will likely result in a more modest growth rate compared to the strong bounce back we saw in Q3.
Key Takeaways
Canada faces a number of economic headwinds including the COVID-19 second wave, sluggish global economic growth and less accommodative policy.
The Canadian consumer is the key to driving economic growth, but as the government rolls back household support, spending must be driven by job gains.
We continue to keep a close eye on the labour market – we expect the unemployment rate to hit 8.5% by year end down from the 13.7% peak during the recession. This bodes well for consumer spending.
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