Canadian mortgage renewals will weigh on economic growth

Deloitte Canada predicts more interest rate cuts in 2025, affecting Canadian homeowners with mortgage renewals. Despite a strong start in 2024, GDP growth is forecasted to slow to 2.6% in 2025. The Bank of Canada's benchmark rate is expected to fall to 2.75% by the end of the year. With half of outstanding mortgages yet to renew, this could affect economic growth. Inflation is expected to reach 2% by Q2 2025. Despite no forecasted recession, unemployment may slightly rise to 6.3% in late 2024. Productivity issues could affect living standards, but improvements are anticipated.