People cross Wellington Street on their way to Parliament Hill, a day before the return of the House of Commons, on Sunday, Sept. 14, 2025. THE CANADIAN PRESS/Justin Tang
PBO trims economic forecast for 2026 and 2027 amid new U.S. tariffs
Oct 20, 2026 | 6:56 AM
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OTTAWA — The Parliamentary Budget Office is trimming its outlook for economic growth for this year and next amid new U.S. tariffs and Canadian countermeasures.
The federal budget watchdog says it now projects real gross domestic product growth of 0.9 per cent for this year and 1.5 per cent in 2027.
The forecast is down from an estimate in June for growth of 1.1 per cent and 1.6 per cent, respectively.
Trade talks between Canada and the U.S. broke down at the end of August followed by a new round of U.S. tariffs and Canadian counter-tariffs.
