Economic activity should expand at a strong pace this year but, with the Bank of Canada set to tighten policy rapidly, we expect the quarterly pace of GDP growth to slow below potential in 2023, as residential investment falls from its elevated level. Slower GDP growth will at least help to pull consumer price inflation back toward 2% by late 2023 and, as residential investment stabilises, we expect GDP growth to pick back up to its potential in 2024.
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