A new report from CFIB shows it’s forecasting that growth declined 0.8% in the second quarter and will contract by a further 0.8% in the third quarter.
The group says an analysis of the impact of tariffs on supply chains highlights that most firms are anticipating long-term disruptions.
CFIB chief economist Simon Gaudreault says the uncertain trade situation is impacting business confidence, resulting in paused or cancelled investments.
Private investment is expected to fall 13% in the second quarter and continue to decline by 6.9% in the third quarter.
Despite the anticipated downturn, CFIB highlights that inflation remains stable, putting the Bank of Canada in a better position to consider easing borrowing costs in the second half of the year.
This report by The Canadian Press was first published July 24, 2025.
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Last modified: July 24, 2025
