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UBS warns US-Canada trade tensions threaten economic growth, downgrades Canada's 2026 GDP growth forecast to 0.9%
UBS states that escalating US-Canada trade tensions could harm Canada's economic recovery by weakening business confidence, consumer spending, and investment. The bank has lowered its forecast for Canada's 2026 GDP growth from 1.0% to 0.9%. While direct export risks are limited, UBS notes that broader supply chain disruptions, weaker demand, and investment uncertainty could amplify the economic impact.
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