ATLANTIC ECONOMIC COUNCIL: Another challenging year for Atlantic Canada’s economy in 2024

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ATLANTIC ECONOMIC COUNCIL: Another challenging year for Atlantic Canada’s economy in 2024
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Economists are debating whether Canada is currently in a recession induced by aggressive central bank interest rate hikes. A “technical” recession is defined as two consecutive quarters of negative growth in real gross domestic product . The latest data show that our country’s real GDP declined 0.2 per cent in the second quarter of this year.

We are seeing signs of a slowing economy in Atlantic Canada. Employment growth is weakening, investment in housing markets has fallen and many exporters are struggling. But there are still some bright spots. Unemployment in the region remains historically low, our population is growing at record levels and price increases are slowing.

Employment growth is weakening, investment in housing markets has fallen and many exporters are struggling. But there are still some bright spots. High interest rates have slowed some construction. Labour availability challenges and rising construction input costs have also delayed housing activity.At our upcoming business outlook events around the region we will share our insights on when interest rates are likely to fall, when price increases will get back to a more sustainable level and how population growth can help the economy or hurt it if not managed properly.

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