Economic think-tank says it’s back to reality after post-pandemic spending
It’s back to reality for the Canadian economy after a post-pandemic spending boom.
That’s according to the Conference Board of Canada. In a new report, the Conference Board said the economy is about to stall because consumers have now burned through savings they built up during the pandemic.
Senior Economist with the Conference Board Richard Forbes said it’s not necessarily bad news.
“I would take it as more of a good news story than a bad news story here,” said Forbes. “There’s going to be a bit of a slowdown like I mentioned, but it’ll be pretty mild. It’s more just the economy coming back down to earth, rather than any big downturn that’s coming.”
It’s something London couple Brett Weber and Anna Nagy learned the hard way. They say they’ve had to cut back on anything but the essentials.
“We’ve had to cut back more than ever,” Nagy told CTV News. “We had a lot of stuff that ended up happening. We needed to move, I’m now having a baby, I run my own business. Even that’s hard. We can’t buy a car.”
Another major factor that will slow the economy is the interest rate hikes.
The Conference Board said the full effect has not yet flowed through.
“Households that need to renew high mortgages will feel the greatest pinch,” said the report.
It’s something those in the housing market are watching closely, according to London real estate agent Chester Pawlowski.
“The prices have been coming down slowly,” he said. “But with the prices coming down, the interest rates have risen, so it’s kind of been a wash right now. So we’re waiting to see when the interest rates settle.”
As for Ontario specifically, Forbes said the downturn in consumer spending will be countered somewhat by government investment in new industry, such as battery plants in southwestern Ontario.
“So between that and a few automotive retooling activities at different motor vehicle companies, we see a lot of bright spots in terms of the business investment picture,” said Forbes.
The Conference Board says economic output in Ontario will remain slow in 2024, with a rebound not expected until 2025.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.7021723.1725138491!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
Johnny Gaudreau's widow, Meredith, remembers husband in heartfelt social media posts
The widow of Johnny Gaudreau called her husband 'the absolute best dad in the world' and thanked him for 'the best years of my life' in two Instagram posts shared Saturday.
18 drivers charged for filming vehicle crash site on Hwy. 401
Ontario Provincial Police were busy on Saturday morning issuing tickets to distracted drivers allegedly using their phones to film a serious crash on Highway 401 in eastern Ontario.
More people than ever are eating alone at restaurants. This is why
The stigma of single dining has faded as more people live alone than ever before. Today, more people are making reservations for one.
Man charged after alleged 'indecent act' in family shower area at Toronto pool
A 35-year-old Toronto man is facing charges after allegedly 'committing an indecent act' in the family shower area of a public pool.
Orangutan swung in 'cartwheel-like motion' before climbing down tower to escape: Toronto Zoo
The Toronto Zoo says it has learned how one of its orangutans escaped from its enclosure earlier this week.
A Norwegian princess marries an American self-styled shaman in front of a star-studded audience
Social media influencers, reality stars and TV personalities were among the guests as the Norwegian king's eldest child, Princess Martha Louise, married an American self-professed shaman on Saturday in a wedding ceremony following three days of festivities.
Rapper Fatman Scoop dies at 53 after collapsing on stage in Connecticut
Fatman Scoop, the rapper who topped charts in Europe with 'Be Faithful' in the early 2000s and later lent his distinctive voice and ebullient vibe to hits by such artists as Missy Elliott and Ciara, died after collapsing on stage at a show in Connecticut, according to officials and his family.
Driver clocked at 175 km/hr claims water bottle rolled under gas pedal
An OPP officer clocked a man from Nottawasaga travelling on Highway 401 at 175 kilometres per hour on Friday.
As interest rates trend down, could housing get more affordable?
Forecasters are expecting further Bank of Canada interest rate cuts, but does that mean it's a good time to buy or sell a home? Real estate analyst Jason Mercer shares his predictions with CTV Your Morning.