An interesting year ahead

In our last outlook, we said that the fourth quarter of 2024 promised to be at least as interesting as the third quarter had been, and that certainly proved to be the case. Looking ahead to 2025, investors are surely in for an interesting year. We’ll examine some of the risks, both positive and negative, facing Canada’s economy, as well as some of the “known unknowns” investors may want to keep an eye on.

Canadian economy still marching to its own beat 

The Canadian economy continues to chart its own path in terms of economic growth, inflation and central bank policy. Relative to other advanced economies, inflation remains well behaved, giving the Bank of Canada (BOC) ample room for further interest-rate cuts. That should be supportive of economic activity, although as we noted last quarter, a widening divide between Canadian and U.S. interest rates could put downward pressure on the Canadian dollar at times.

Important information

 SEI Investments Canada Company, a wholly owned subsidiary of SEI Investments Company, is the Manager of the SEI Funds in Canada. 

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