Ottawa economy plunges into uncertainty: inflation, unemployment and tariff threats

According to Statistics Canada, inflation accelerated to 1.9% in June. Clothing and car prices rose, while gasoline fell 13.4% year-on-year. However, rising unemployment and threats of new tariffs from the United States are adding to concerns.

The Ottawa-Gatineau region lost about 9,500 jobs in June. Unemployment in Ottawa rose to 6.2%. Economists say this will lead to lower consumer spending and a slowdown in housing demand.

67% of Canadians expect a recession in the coming year. According to Professor Ian Lee of Carleton University, the sense of crisis encourages people to spend less, which cools the economy but also curbs inflation.

Of particular concern is the threat of 35% tariffs from the United States. If a trade deal is not signed by August 1, the region could face economic stagnation or a mild recession. Businesses are already reconsidering expansion plans, fearing rising prices and loss of customers.

“We need an agreement with the US — the alternative is even worse,” Li stressed.