Key Highlights - Macro Economic Landscape (October 2024)

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• GDP Growth: Canada’s real GDP grew by 0.2% in Q3 2024, reaching $2,266 billion. This quarterly growth was primarily driven by a 2.0% rise in finance and public sectors, partially offset by reduced activities and production in the manufacturing and oil and gas extraction sectors.

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• Consumer Price Index (CPI): CPI growth slowed to 1.6% YoY in September, driven by a 10.7% drop in gasoline prices, though rent and groceries rose significantly over three years.

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• Cost of Living: Rising costs in housing, food, and energy continue to challenge Canadians, with 45% struggling with expenses and 38% citing housing affordability concerns.

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• Interest Rates: The Bank of Canada lowered its policy rate to 3.75% in October, easing borrowing costs and encouraging housing demand despite elevated rates.

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• New Housing Price Index (NHPI): Prices remained flat in September; regional disparities persisted, with Calgary and Trois-Rivières leading gains, and Kitchener-Cambridge-Waterloo showing the largest decline.

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• Structured Finance: Total asset-backed securities issuance reached $35.7 billion by August, with residential mortgage-backed securities representing 38%.

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• Commercial Real Estate: By June 2024, year-to-date transaction volume reached $29.2 billion, slightly exceeding the same period in 2023, indicating a modest recovery in investor confidence despite subdued market activity. Industrial and multifamily investments accounted for at least two-thirds of total transactions.