Canada Retail National Report

Economic resilience continues across the nation. Canada’s economy got off to a good start in 2023. Job creation within the first three months exceeded expectations, with the unemployment rate hovering near a historic low. Consumer spending also remained healthy as retail sales continued to expand at a steady pace. While economic activity across the nation will likely soften in the upcoming months, due to still-high inflation and a prolonged period of elevated interest rates, robust economic data released so far this year suggests that the Canadian economy may only witness a mild slowdown without having to experience a significant rise in unemployment. This positive macroeconomic backdrop, if realized, will bode well for Canada’s retail sector. In addition, the pandemic has changed and diversified the role of physical stores, which will further increase demand for retail space over the coming years.