Economic and fiscal outlook — October 2026
The Parliamentary Budget Officer forecasts Canadian economic growth of 0.9% in 2026 and 1.5% in 2027, reducing its previous projections as tariffs and trade uncertainty weigh on the outlook.
The federal deficit is projected to reach $63.3 billion in 2026–27, rising to $70.2 billion in 2027–28. Public debt charges are expected to increase from $59.3 billion to $83 billion between 2026–27 and 2030–31, becoming the fastest-growing expense category. These projections reflect the PBO’s baseline before measures in the forthcoming federal budget.
For Nova Scotia rental housing providers, the outlook provides a cautious backdrop for investment decisions. Modest economic growth and continuing trade uncertainty warrant careful assumptions about construction costs, financing and future demand.
Source: Office of the Parliamentary Budget Officer