Deloitte Canada lowers 2027 growth outlook as tariffs weigh on the economy
Canada GDP forecast cut as tariffs and weak demand pressure growth in 2027 See how trade tensions and sector shifts may affect businesses and consumers
Deloitte Canada has reduced its forecast for Canada’s 2027 GDP growth by 20%, saying higher tariffs and weaker conditions are increasing pressure on consumers and businesses.
The firm said the latest escalation in the CanadaU.S. trade dispute, including new U.S. bans on some Canadian imports, could slow economic activity in late 2026 and early 2027. Deloitte now expects GDP growth of 1.6% in 2027, down from its earlier 2% estimate, while leaving its 2026 forecast at 0.9%.
Chief economist Dawn Desjardins said the impact of tariffs and countermeasures will vary across sectors, with some industries facing heavier strain and others still seeing growth supported by government spending and investment. Statistics Canada also reported that GDP was flat in July, adding to signs that the economy is cooling.