EJQ7 - Winter 2026 - Journal - Page 34
General Market Commentary
THE BANK OF CANADA held its target on December 10, 2025 at 2.25 per
cent. Major economies around the world continue to show resilience to U.S.
trade protectionism, but uncertainty is still high.
Canada’s economy grew by a surprisingly strong 2.6 per cent in the third
quarter, even as 昀椀nal domestic demand was 昀氀at. The Bank chalks up the
increase in GDP as a re昀氀ection of volatility in trade. The forecast is that 昀椀nal
domestic demand will grow in the fourth quarter, but with an anticipated
decline in net exports, GDP will likely be weak. Growth is predicted to pick
up in 2026, although uncertainty remains high and large swings in trade
may continue to cause quarterly volatility.
When it comes to cleantech, 2025 has been a pivotal year with shifting
market conditions and policy developments driving sector-wide change.
The recently presented Foresight Cleantech Awards provide a look into
emerging Canadian companies making their mark–many of them thanks
to public-private partnerships in support of economic opportunities that
enable innovative solutions.
BANK OF CANADA
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