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CIBC Chief Economist Avery Shenfeld shares his thoughts on the state of the economy

There hasn&#8217;t been many good things to say about the Canadian economy this year, but we&#8217;re on the verge of declaring victory against inflation and about to reap the rewards for having won that battle.
Inflation has been running below 2% if you exclude mortgage interest, which will ease as interest rates fall, and the Bank of Canada is set before the end of the year to accelerate the pace of interest rate cuts.
By 2025, we expect to see short term interest rates below 2.5%.
That should see the unemployment rate reach a peak soon and then begin to descend and allow economic growth to accelerate from an anemic 1% this year, to something close to 2% in 2025, and perhaps even close to 3% in 2026.
So inflation has been a problem, but with that out of the way, we should see an opportunity for the Canadian economy to do better in the coming two years.

As rates drop, what is on the horizon for the Canadian Economy?

Avery Shenfeld

Managing Director and Chief Economist

CIBC Capital Markets