82% of market participants cite Middle East conflict as the biggest threat to Canada’s economy, surpassing trade tensions and financial tightening.
A Bank of Canada survey reveals geopolitical risks, particularly the Middle East war, as the dominant concern for Canada’s economy. 82% of respondents identified it as the top risk, outpacing trade tensions (79%) and tightening global financial conditions (57%).
The shift follows escalating disruptions from the Iran conflict, which have overtaken trade disputes as the primary downside risk. Prior surveys had emphasized trade tensions, notably those linked to U.S. tariffs, as the leading threat.
The findings underscore heightened uncertainty for Canadian markets, with energy price volatility and supply chain disruptions cited as key vulnerabilities.