National Bank Sees Canada's 2027 GDP Growth Accelerating Despite US Trade Tensions

07:26 AM EDT, 09/08/2026 (MT Newswires) -- Canada's gross domestic product is expected to grow 1.4% in 2027, up from a projected 0.9% this year, despite continued trade tensions with the US, according to National Bank of Canada Capital Markets in a note. The outlook follows a strong second-quarter rebound, fueled by international trade and stronger-than-expected domestic demand, wrote the bank in a late Friday note. Higher energy prices tied to the Middle East conflict improved Canada's terms of trade, boosting real gross domestic income faster than GDP. National Bank cautioned that the recovery could lose momentum as temporary boosts fade, the housing market softens and US trade tensions deepen. The bank expects US trade tensions to ease eventually, but says the outlook remains uncertain, including the risk of further Canadian retaliatory measures.