Economic and Financial Outlook
The Intensifying Fight against Inflation Could Orchestrate a Global Recession
September 22, 2022
- The European economy continues to bear the brunt of the war in Ukraine and its impacts on energy prices.
- We’re expecting the US economy to expand fairly slowly in the second half of 2022, and further drops in real GDP are forecast for early 2023.
- The Canadian economic outlook has rapidly deteriorated on the back of aggressive rate hikes by the Bank of Canada to rein in inflation.
- We can expect Quebec’s economic strength to be shaken over the coming quarters by the difficulties faced by households, and declines in business investment and exports.
- Just as at the national level, no province will be immune to the dampening effects of rising interest rates, elevated inflation, rapidly correcting housing markets, and a deteriorating global expansion.
- Our own forecast for how much more monetary tightening is needed to bring inflation back down to target has also increased.
See the full publication in PDF.
Contact our economists
Elsewhere in Canada:
1-866-866-7000 This link will launch your default phone software.