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Canada recession before 2027?

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Bulls Say, Bears Say

Bulls Say

Canada GDP contracted in Q4 2025 and tariff pressures from the US are accelerating

Housing market stress and consumer debt burdens are at historic highs

Bank of Canada rate cuts have been slow to stimulate the weakening economy

Bears Say

38% YES pricing implies the recession threshold is not yet met by consensus

Canada's labor market has remained resilient despite economic headwinds

A US-Canada trade deal could provide a swift catalyst for recovery