Economists are forecasting that Canada’s GDP will experience a pull-back in the first quarter of this year. And the Good News is that they also predict that Canada’s economy will enjoy a stronger recovery over the rest of 2021. GDP growth is seen averaging 4.4% in 2021, with forecast growth of 4% for 2022.

Why the optimism? Lockdown measures to prevent the spread of COVID-19 meant that those with disposable incomes had less opportunity to spend. Reports indicate that, as consumption decreased, Canadian households were saving 28.2% of disposable income. This is a dramatic increase from the 3.1% households were saving in Q2 of 2019. With an estimated $90 billion in savings, economists predict a mini “Boomlet” once the lockdowns end and life begins to look more “normal.”

While the lockdowns dampened overall economic performance, the housing market remained resilient. Over the course of last year, more than 551,000 homes traded hands over Canadian MLS® Systems – a new annual record. This is an increase of 12.6% from 2019 and stood 2.3% above the previous record set back in 2016.