Rosenberg Research's recently-released report, "Canadian Economy on Life Support," flags Canada's weak GDP growth and places the country on a recession watch.
Expert warns Canada’s ‘life support’ economy tests Bank of Canada cuts | Benefits and Pensions Monitor | Freschia Gonzales:
February 5, 2026 - "Canada’s economy is 'on life support' even after 275 basis points of rate cuts, with weak growth, soft housing and a sliding currency sharpening questions about the Bank of Canada’s policy path, according to Rosenberg Research via BNN Bloomberg. The report, Canadian Economy on Life Support, says per capita GDP is still falling and the economy is 'growing at only one percent annually' despite the policy rate dropping from a high of five percent in 2024.
"The report projects the economy will shrink in the fourth quarter, with output falling at an annualised rate of 0.5 percent quarter-over-quarter, compared with the Bank of Canada’s forecast of 0.0 percent. Because the economy has already contracted in two of the last three quarters, the report says Canada is on 'recession watch' for 2026.
"David Rosenberg, chief economist and founder of Rosenberg Research, told BNN Bloomberg that 'this is what 275 basis points of Bank Canada rate cuts delivers: the grand total of one percent growth economy'....
"Rosenberg argued the central bank will 'be compelled to cut rates further from its already egregiously low interest rate of 2.25 percent'.... He said the Canadian dollar is likely to face additional downward pressure and ... argued that 'as weak as the Canadian dollar has been up until recently, it’s probably not weak enough.'"
Canada's economy is 'on life support': Rosenberg | BNN Bloomberg | February 3, 2026:
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