High interest rates, inflation and a slowing economy hit Canadian wallets hard in 2023. CBC’s Peter Armstrong breaks down the financial outlook for 2024 and why there’s still a lot of uncertainty ahead.

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Canada’s economy in 2024: 4 things to watch

As we look ahead to Canada’s economic landscape in 2024, there are several key factors that will shape the country’s financial outlook. From trade relations to inflation, here are four things to keep an eye on in the coming year.

1. Trade and geopolitical relations
With ongoing trade disputes and geopolitical tensions around the world, Canada’s economy will continue to be impacted by its international relationships. The outcome of trade negotiations, particularly with the United States and China, will have a significant effect on the country’s export markets and overall economic stability. Additionally, Canada’s ability to diversify its trade partnerships and reduce reliance on specific countries will be crucial in navigating global economic uncertainties.

2. Inflation and interest rates
Inflation has been a major concern for many countries in recent years, and Canada is no exception. As the cost of goods and services continues to rise, the Bank of Canada’s approach to managing inflation through interest rate adjustments will be closely monitored. The central bank’s decisions will have far-reaching implications for borrowing costs, consumer spending, and investment activity, and will play a critical role in shaping the country’s economic health in 2024.

3. Technology and innovation
The role of technology and innovation in driving economic growth cannot be overstated. In 2024, Canada’s ability to embrace digital transformation, promote technological advancements, and foster a culture of innovation will be key in maintaining its competitive edge on the global stage. As industries continue to evolve and adapt to new technologies, the country’s economic success will be closely tied to its capacity for innovation and its ability to capitalize on emerging trends.

4. Environmental sustainability
Amid growing concerns about climate change and environmental sustainability, Canada’s economy in 2024 will be shaped by its commitment to addressing these pressing issues. As the world transitions to a greener, more sustainable future, Canada’s policies and initiatives related to energy production, resource management, and environmental protection will be closely scrutinized. The country’s ability to balance economic growth with environmental responsibility will be a crucial factor in shaping its long-term prosperity.

In conclusion, Canada’s economic outlook in 2024 will be influenced by a variety of factors, including trade relations, inflation, technology, and environmental sustainability. By keeping a close watch on these key areas, policymakers, businesses, and individuals can better navigate the challenges and opportunities that lie ahead, and contribute to a strong and resilient Canadian economy.