Canada’s economy is still approaching the downturn in 2023

Canada’s economy continues to head into recession next year, although signs of easing inflationary pressures increase the likelihood that the downturn will be mild by historical standards, according to the Royal Bank of Canada. Housing market activity appears to be nearing a bottom after a sharp correction in spring and summer, while the residual effect of higher interest rates will continue to trickle through in the coming quarters, dampening consumer spending, the bank says. It is estimated that higher household debt payments and inflation will save an additional CAD$3,000 in purchasing power per household in 2023. At the same time, RBC expects …