A recent survey of financial experts reveals a shift in recession expectations, showing a decrease in the likelihood of an imminent economic downturn. However, there is growing uncertainty regarding the timing and degree of anticipated Bank of Canada interest rate cuts.
That’s according to the Bank of Canada’s latest quarterly Market Participants Survey, which consists of a questionnaire sent to 27 influential financial market participants.
Based on the median of results, the respondents believe there is a 35% chance of the economy being in recession in the next six months, down from 48% in the previous quarter. However, expectations that the country could be in recession in 6 to 12 months remained unchanged at 40%.
The experts also now see real GDP growth of 1% in 2024, up from 0.8% in the Q4 survey.
A greater number of respondents have…
