The Chief Economist for Business Development Bank of Canada’s expects slow but positive growth for the remainder of 2026.
Pierre Cleroux told the crowd at Invest WindsorEssex that the majority of that growth will come from consumers.
"Total revenue for people in Ontario have been increasing and that's the reason why we are optimistic for this year. We believe that consumption will continue to grow as business investment is more slow and also our exports are more slow because of the tension we have with the US," said Cleroux.
He notes government spending will also help with economic growth in the coming years and a lot of that will come from an increase in defence spending.
Cleroux said businesses in Windsor-Essex are positioned to take advantage of that.
"You have a strong manufacturing base and I think that's exactly what we need to build the supply chain in Canada. I think Windsor is at the heart of the transformation that the Canadian government is trying to do," said Cleroux.
Despite the optimistic outlook for 2026, Cleroux and other economists are keeping a close eye on CUSMA renegotiations scheduled for this summer.
He said not reaching a deal would cause a recession in Canada but he doesn't think that's likely.
"When I look at the economy I don't think the US can afford not having a free trade agreement with Canada. We're too important, we buy from more than $400 billion from the US so I believe there will be a deal," said Cleroux.
