Best’s Market Segment Report: Canada’s Economy Showing Volatile Growth; Trade Uncertainty Clouds Outlook

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Postmedia has not reviewed the content. by Business Wire Best's Market Segment Report: Canada's Economy Showing Volatile Growth; Trade Uncertainty Clouds OutlookAuthor of the article:OLDWICK, N.J. — Canada’s economy remains resilient, but growth has become increasingly uneven with the outlook highly sensitive to U.S. trade policy and other external shocks, according to a new AM Best report.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Best’s Market Segment Report, “Canadian Economic Growth Has Been Volatile,” is the first of several reports focused on Canada’s major insurance segments ahead of AM Best’s Insurance Market Briefing – Toronto, which will take place Wednesday, Sept. 23, 2026.According to the report, Canada’s economy weakened toward the end of 2025 and into early 2026, partly reflecting weaker manufacturing activity and continued pressure on trade-sensitive industries. Economic activity strengthened considerably in second-quarter 2026, led by stronger exports, particularly energy and other goods. Despite the improvement, the durability of the rebound remains uncertain given the surrounding U.S. trade policy and its potential impact on exports and the overall economy.“Trade relations between Canada and the United States have become strained further following a breakdown in bilateral trade negotiations, and this has led to the reversal of some of the earlier easing in trade tensions,” said Ann Modica, director, Credit Rating Criteria Research and Analytics, AM Best. “Canadian exporters and businesses are likely to continue adjusting to a more uncertain trade environment; however, while Canada has made some progress in diversifying its export markets, its close economic ties with the United States leave its economy highly exposed to further changes in U.S. trade policy.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againOther report takeaways include:Labor market conditions remain soft but stable, with cautious hiring and moderating wage growth. However, the unemployment rate declined to 6.4% in July, its lowest level in two years.Real household consumption increased by 2.3% in 2025 with spending particularly supportive during the first half of 2025. Household demand remains resilient despite elevated borrowing costs, the softer labor market and continued economic uncertainty.The Bank of Canada is expected to keep rates unchanged as weaker growth is offset by renewed inflation pressures from energy prices and tariffs.For more information about AM Best’s Insurance Market Briefing – Toronto, please visit the event website.AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.View source version on businesswire.com: Ann ModicaDirector, Credit Rating CriteriaResearch and Analytics+1 908 882 2127ann.modica@ambest.comChristopher SharkeyAssociate Director, Public Relations+1 908 882 2310christopher.sharkey@ambest.comAl SlavinSenior Public Relations Specialist+1 908 882 2318al.slavin@ambest.comThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.