Canada’s economy is forecast to rebound toward the end of this year, bringing growth to 0.7 per cent for 2026 after weak activity in the first quarter, Deloitte Canada said in a summer outlook released Thursday.

Dawn Desjardins, chief economist at the consulting firm, said in the report that several factors have been weighing on the economy, including trade tensions, energy costs, supply chain pressures and lower confidence. However, she is expecting growth to recover next year, totalling two per cent in 2027.

“This will also help Canadian consumers feel better because right now Canadian consumer confidence is also pretty soft and it’s soft because people are worried about their financial future, they’re worried about their jobs and all of these things come together to a stronger message for 2027," Desjardins said.

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Statistics Canada said Monday that the annual rate of inflation jumped to 3.2 per cent in May, up from 2.8 per cent in April and notching the highest headline inflation rate since December 2023.

However, [Bank of Canada governor Tiff] Macklem said ... that he’s not seeing evidence of generalized inflation even as price pressures surged last month.

Oil prices have come down in recent months, with crude oil contracts dipping just below US$70 on Wednesday after surging above US$100 per barrel in late April.

“If the futures curves are correct, if we do continue to see these energy prices come down, that will alleviate some of that pressure on household pocketbooks,” Desjardins said.

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