Canada News | June 27, 2026 Economic Outlook and Energy Strategy Advance on Dual Fronts

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📰 Deloitte Forecasts Canadian Economy to Rebound by Year-End, 2% Growth in 2027

Canada's economy is forecast to recover toward the end of this year, with growth reaching just 0.7 percent for 2026 after weak activity in the first quarter, according to Deloitte Canada's summer economic outlook released Thursday. Trade tensions, energy cost volatility, supply chain pressures, and dampened business and consumer confidence continue to weigh on the economy.

Deloitte chief economist Dawn Desjardins said that as clarity emerges on these key issues, business investment is expected to accelerate in the second half of the year, driving job creation. She projects growth will recover to 2 percent in 2027, with consumer confidence following suit.

Canada slipped into a technical recession earlier this year with two consecutive quarters of GDP decline. However, economists caution against panic, noting the small decline and resilient labor market make a prolonged downturn unlikely. Prime Minister Mark Carney's infrastructure investment and economic diversification strategy are viewed as key pillars supporting the recovery.

— BNN Bloomberg / The Canadian Press

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📰 BBC Analysis: Five Charts That Explain Canada's Economic Struggles

The BBC published an in-depth analysis this weekend using five key charts to illustrate the real state of Canada's economy. While the IMF forecasts 1.6 percent growth for Canada in 2026—ahead of European G7 partners but lagging behind the United States—the lived experience of ordinary Canadians tells a far less optimistic story.

Inflation remains the biggest pain point. The latest data shows inflation rose to 3.2 percent in May, up from 2.8 percent in April, driven primarily by higher energy costs, notably gasoline prices. A recent Angus Reid Institute poll found that 61 percent of respondents ranked the cost of living as their top concern, well ahead of housing affordability, crime, and U.S. tariffs.

The analysis notes that while Prime Minister Carney has pledged to build Canada into the "strongest economy in the G7," his large-scale infrastructure investments and defense spending plans offer limited help to Canadians struggling to make ends meet today. Economist Jeremy Kronick of the C.D. Howe Institute remarked, "The economy is weak. Whether you call it a recession really misses the point."

— BBC News

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📰 Ottawa Nearing Major Projects Deal with B.C. as Alberta Pipeline Proposal Advances

The federal government is on the cusp of signing a sweeping agreement with British Columbia on major projects, which could be announced as early as next week, two government officials told The Globe and Mail. In parallel, Alberta's proposal for a West Coast crude oil pipeline is also advancing.

Notably, Ottawa is insisting that Alberta must simultaneously reach a deal on the Pathways carbon-capture project before the pipeline proposal receives a green light. The Pathways project aims to control greenhouse gas emissions from oil sands production and is viewed as critical to maintaining the federal government's environmental credibility. The oil sands consortium behind Pathways soured on the project due to costs, but federal officials say they are open to further backstopping the multibillion-dollar initiative with existing funds.

Amid the uncertainty driven by U.S. President Donald Trump's tariff policies, Ottawa views the pipeline as a strategic plank in its plan to diversify the economy away from the United States. Prime Minister Carney and B.C. Premier David Eby have held a rapid succession of meetings, with the most recent on June 18 and another scheduled for next week.

— The Globe and Mail

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📰 Energy Minister Names Five Priority Power-Line Projects for Federal Backing

Energy Minister Tim Hodgson announced Friday that the federal government will prioritize infrastructure upgrades for five interprovincial power-line projects, known as interties. These transmission lines allow provinces to share excess electricity in both directions, improving reliability and reducing costs.

"Through transmission lines like these and a more connected electricity system, we can improve reliability, lower costs, and support economic growth," Hodgson said at a news conference. While no new dollar figure was attached to the announcement, the federal government committed to providing "prioritized financial and regulatory support" for all five projects spanning multiple provinces and Yukon.

The move is part of Prime Minister Carney's "Powering Canada Strong" national strategy, which aims to double Canada's electricity capacity by 2050 and lower electricity costs for seven in ten households by expanding the role of natural gas. RBC Economics notes that with signs of firming economic activity in Q2 and subdued core inflation, the central bank is expected to hold interest rates steady through 2026.

— CBC News

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📰 Christine Sinclair and Michael J. Fox Elevated to Order of Canada's Highest Level

Governor General Louise Arbour announced Friday the latest appointments to the Order of Canada, with 56 distinguished Canadians receiving the country's highest civilian honor. The appointments recognize outstanding contributions across diverse fields.

Headlining this year's cohort, soccer legend Christine Sinclair and acclaimed actor and Parkinson's advocate Michael J. Fox were promoted to Companion level—the Order's highest rank. Sinclair is the all-time leading goal scorer in international football history, while Fox has earned national admiration for his tireless advocacy in Parkinson's disease research and public awareness. Montreal Canadiens great Yvan Cournoyer and Nova Scotia's first Black Lieutenant Governor Mayann Francis were also among the honorees.

The Governor General's office stated that this year's appointees represent the diverse excellence of Canadian society—spanning sports, science, business philanthropy, and community service—embodying the Canadian spirit of "desiring a better country."

— CBC News

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📰 Health Canada Approves Zepbound for Sleep Apnea in Adults with Obesity

Health Canada approved the weight-loss drug Zepbound (tirzepatide) this week for the treatment of obstructive sleep apnea (OSA) in adults living with obesity. This makes Zepbound the first and only GLP-1 medication approved in Canada for this sleep disorder.

Clinical studies demonstrated that patients taking Zepbound experienced significantly fewer nighttime breathing interruptions per hour, with notable improvements in sleep quality. Obstructive sleep apnea, a condition where the upper airway becomes blocked during sleep, is closely linked to obesity and affects millions of Canadians. Zepbound was previously approved in Canada for weight management.

Analysts note that this new indication not only provides patients with an alternative to continuous positive airway pressure (CPAP) devices but also strengthens the case for provincial public drug plan coverage. With obesity rates continuing to climb across Canada and obesity-related sleep apnea prevalence rising in tandem, this regulatory decision is being viewed as a significant public health milestone.

— Global News

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📰 2026 FIFA World Cup: Canada Secures $11 Million in Prize Money, Faces South Africa Sunday

The 2026 FIFA World Cup has entered the knockout stage, and co-host Canada has already guaranteed itself US$11 million in tournament prize money heading into Sunday's Round of 32 match against South Africa in Los Angeles. This marks a historic milestone for the Canadian men's national team on football's biggest stage.

Canada delivered commendable performances during the group stage, earning recognition from fans at home and abroad for disciplined defensive organization and effective counter-attacking tactics. As a co-host nation, Canada has staged group-stage matches in Vancouver, Toronto, and other cities, sparking an unprecedented nationwide football fever.

If Canada defeats South Africa to advance to the Round of 16, prize money will increase to US$17.5 million. The match is set for Sunday, June 28, with public viewing zones in major cities expected to draw hundreds of thousands of fans. CTV and TSN will provide full live coverage nationwide.

— Narcity / The Canadian Press

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📰 Edmonton Region Deluged by 30-60 mm of Rain, Possibly Setting New Records

Environment Canada issued a special weather statement for the Edmonton region warning of 30 to 60 millimeters of heavy rainfall, with some areas potentially breaking historical records for this time of year. With ground already saturated from above-normal precipitation this spring and early summer, additional rain will increase the risk of overland flooding, washouts, and infrastructure impacts.

Meteorologists attribute the heavy rainfall to a collision of Pacific moisture with Arctic cold air. Communities east of Edmonton, including Tofield, have already reported localized flooding, and municipal crews are closely monitoring drainage systems.

Environment and Climate Change Canada advises residents to avoid driving through flooded areas, watch for basement seepage, and prepare emergency kits. The rainfall is expected to taper off by Saturday evening, but river levels may continue rising for several days afterward.

— Global News

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📰 Canadian Businesses Close AI Adoption Gap with U.S., but Productivity Gap Remains

New data from Statistics Canada reveals that 19.2 percent of Canadian businesses reported using artificial intelligence to produce goods or deliver services over the past 12 months—triple the 6.1 percent recorded when the question was first asked in Q2 2024. The U.S. Census Bureau's comparable survey shows American business AI adoption at 17 to 20 percent, meaning the two countries are now essentially tied.

Avi Goldfarb, Rotman Chair in Artificial Intelligence and Healthcare at the University of Toronto, notes that Canadian business AI adoption had consistently lagged behind the U.S., and the productivity impact of AI has primarily been observed in the United States. While Canada has caught up in adoption rates, translating AI usage into actual productivity gains remains the next frontier.

The federal government recently unveiled its "AI for All" national artificial intelligence strategy and appointed Evan Solomon as Minister of AI and Digital Innovation. Analysts view international collaboration on open-source AI projects as a critical pathway for Canada to strengthen its technological competitiveness.

— The Hub

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📰 Toronto Metropolitan University Among Canada's Biggest Risers in World Rankings

Toronto Metropolitan University (TMU) has achieved a significant breakthrough in the latest QS World University Rankings, emerging as Canada's biggest riser over the past two years and now ranking among the top 10 percent of universities evaluated globally. The achievement reflects sustained progress in sustainability metrics, citations per faculty, and employer reputation.

In the Times Higher Education Impact Ratings, TMU also delivered strong results—ranking in the top 200 universities worldwide for advancing the UN Sustainable Development Goals. TMU placed in the top 200 for SDG 1 (No Poverty) and ranked 94th globally for SDG 5 (Gender Equality). The university attributes its success to an experiential learning model that integrates academic rigor with hands-on opportunities, ensuring career-ready graduates.

Canadian higher education continues to demonstrate robust global competitiveness. Traditional powerhouses such as the University of Toronto and UBC maintain their top-tier positions, while rising institutions like TMU are making breakthroughs across multiple dimensions, reflecting the diversity and innovative vitality of Canada's post-secondary system.

— Toronto Metropolitan University

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