What shape will Canada’s economic recovery take?
Economists say the Canadian economy is on track for a 5.5% contraction for 2020 – the worst year since the Great Depression. With COVID-19 cases on the rise, president-elect Joe Biden soon at the helm in the U.S., and no clear fiscal guardrails to guide how the Canadian government will ultimately reduce its enormous stimulus spending, what is Canada’s economic outlook for 2021?
The gloom is lifting, with vaccines now underway; but expectations for a return to growth remain coloured by a host of uncertainties, both here and abroad.
David Parkinson, the Globe’s economics columnist, and Frances Donald, Managing Director, Global Chief Economist & Head of the Macroeconomic Strategy Team at Manulife Investment Management, discussed the latest developments and the prospects for 2021 and beyond.