Canada GDP Forecast Cut to 0.7% for 2026, BoC Seen Steady – NBC

National Bank of Canada (NBC) analysts Taylor Schleich and Vy Le have revised down Canada's 2026 GDP growth forecast to 0.7%, underscoring a widening growth gap with the US economy.

According to the analysts, the subdued outlook points to persistent economic drag, while the Bank of Canada is expected to maintain a steady policy stance amid the slowdown.

The revision adds to growing concern over Canada's economic underperformance compared to its southern neighbor, with implications for the Canadian dollar and interest rate expectations.