The high interest rate environment experienced over the five years to 2025, along with overall economic growth, has benefitted the Commercial Banking industry in Canada. Banks have done an exceptional job diversifying revenue streams, due to higher interest rates and despite increasing regulations. The industry primarily generates revenue through interest income sources, such as business loans and mortgages, but it also generates income through noninterest sources, which include fees on a variety of services and commissions. Industry revenue has been growing at a CAGR of 13.9% to $490.3 billion over the past five years, with an expected decrease of 0.3% in 2025 alone. In addition, profit, measured as earnings before interest and taxes, has climbed over the past five years and will comprise 31.1% of revenue in the current year. Industry revenue generated by interest income sources depends on demand for loans by consumers and the interest banks can charge on the capital they lend. Therefore, high interest rates have enabled banks to increasingly charge for loans. However, the recent rate cuts in the latter part of the period have limited the price banks can charge for loans, hindering the interest income from these loans, although, with lower rates, commercial banks are anticipated to encounter growing loan volumes. Also, technological innovations have disrupted traditional banking features. The growing trends of online and mobile banking have increased customer engagement and loyalty, which has further aided the industry's expansion. Over the five years to 2030, projected interest rate declines and improvements in corporate profit are still anticipated to boost interest income from lending products. However, the remarkable debt levels of Canadian households make it increasingly likely that a period of deleveraging will begin over the next five years. Quicker growth rates in household debt and consumer spending are expected to increase interest income. In addition, improving macroeconomic conditions, such as unemployment and private investment, are expected to further boost revenue. Nonetheless, industry revenue is forecast to grow at a CAGR of 1.0% to $516.5 billion over the five years to 2030.

The statistic shows the average inflation rate in Canada from 1987 to 2024, with projections up until 2030. The inflation rate is calculated using the price increase of a defined product basket. This product basket contains products and services, on which the average consumer spends money throughout the year. They include expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. In 2022, the average inflation rate in Canada was approximately 6.8 percent compared to the previous year. For comparison, inflation in India amounted to 5.56 percent that same year. Inflation in Canada In general, the inflation rate in Canada follows a global trend of decreasing inflation rates since 2011, with the lowest slump expected to occur during 2015, but forecasts show an increase over the following few years. Additionally, Canada's inflation rate is in quite good shape compared to the rest of the world. While oil and gas prices have dropped in Canada much like they have around the world, food and housing prices in Canada have been increasing. This has helped to offset some of the impact of dropping oil and gas prices and the effect this has had on Canada´s inflation rate. The annual consumer price index of food and non-alcoholic beverages in Canada has been steadily increasing over the last decade. The same is true for housing and other price indexes for the country. In general there is some confidence that the inflation rate will not stay this low for long, it is expected to return to a comfortable 2 percent by 2017 if estimates are correct.

Investment pouring into residential housing construction has benefited apartment and condominium construction activity in Canada in recent years. Immigration into Canada has spurred record population growth, fueling a deepening housing crisis. In major urban centres, demand for housing units has exceeded the supply for years, inciting investment in retrofits and multistory apartment dwellings. Apartment contractors have been vital in filling the gaps in housing, with a low-interest environment and chronically low vacancy rates enticing investors. The imbalance between housing supply and demand kept investors bullish on apartments through COVID-19 pandemic uncertainty, supporting growth. Still, the pandemic's disruption to global supply chains didn't spare contractors, with equipment and material costs reaching unprecedented highs. Particularly through 2021 and 2022, materials price and wage inflation pushed up contractors rates, contributing to industry revenue growth. While the year following saw slower building construction price inflation, high demand has kept the price level from falling. In all, industry-wide revenue has been rising at an expected CAGR of 4.0% over the past five years, totaling an estimated $61.6 billion in 2025, when revenue is set to rise an estimated 1.9%. Beginning in 2022, the Bank of Canada steadily raised or maintained interest rates to combat inflation. Higher interest rates made developers more hesitant to invest in projects, driving up costs for builders and impeding profit. In 2024, however, the Bank of Canada began cutting interest rates, continuing the policy into 2025, until holding rates steady amid tariff uncertainty. Contractors will navigate a challenging landscape over the coming years. While interest rates will continue to fall, they will not reach pandemic lows. Labour shortages and elevated costs will also strain contractors' capacity. These challenges will face the broader construction sector, pushing federal and provincial governments to introduce infrastructure and workforce development programs. Over the next five years, apartment and condominium construction revenue is expected to expand at a CAGR of 1.1% to reach $65.2 billion in 2030.

Janitorial service companies in Canada have been navigating a turbulent period marked by economic fluctuations and evolving market demands. Initially, as nonresidential construction suffered a decrease during COVID-19 due to social distancing measures and closed offices, commercial demand for janitorial services waned. However, an upswing in residential construction, driven by low interest rates, somewhat offset these losses, preventing a dramatic dip in revenue during the pandemic's height. After the initial pandemic-induced revenue drop, the industry’s fortunes were revived in 2021 and 2022 as corporate profit surged. However, this momentum was soon stymied by supply chain disruptions and rising inflation, which increased operating costs and cut into companies’ incomes. The industry's trajectory further stalled as the negative impact of high interest rates chilled residential construction and a resultant decline in consumer spending due to recessionary fears further contracted demand for commercial cleaning services. Since these developments reduced revenue in 2023 and 2024, profit’s revenue share has declined over the past few years. Overall, revenue for janitorial service companies in Canada has crept downward at a CAGR of 1.1% over the past five years, reaching $CA7.9 billion in 2025. This includes a 2.1% increase in revenue in that year. Looking forward, providers are poised to leverage an optimistic economic outlook despite potential hurdles due to changes in US policy. Anticipated reductions in interest rates by the Bank of Canada could boost both residential and nonresidential construction, consequently revitalizing demand for cleaning services. With economic growth expected to increase GDP and per capita disposable income, this should fuel consumer spending, leading to greater corporate profit and, therefore, more investment in the industry’s services. In response, companies are likely to diversify their offerings, focusing on niche areas like green cleaning initiatives, as consumer sentiment towards climate change shifts. Technological advancements such as AI and robotics are also expected to reshape how services are delivered, enhancing efficiency but potentially sidelining smaller providers unable to keep pace. Overall, revenue for janitorial services providers in Canada is forecast to expand at a CAGR of 2.6% over the next five years, reaching $CA9.0 billion in 2030.

Inflation Rate in Canada decreased to 1.70 percent in July from 1.90 percent in June of 2025. This dataset provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Accounting services continue to benefit from stable downstream demand and strong recovery in consumer markets following a period of inflationary volatility in 2022. The mandatory nature of niche accounting services, such as bookkeeping and auditing, continues generating consistent demand among clients looking to ensure regulatory compliance and accurate tax filing as mandated by law. Changes in federal tax policy, such as the Digital Services Tax, provided greater client interest in professional accountants to ensure clients are accurately paying what they owe. Despite this, shifts in economic conditions created some instability for accountants in recent years. The inflation spike in 2022 and subsequent interest rate hikes, which peaked at 5.0% in 2023 per the Bank of Canada, severely consumer spending and corporate profit, making it difficult for many businesses to afford discretionary accounting services (e.g. consulting) and causing more companies to pivot to in-house alternatives. While conditions have since stabilized, continued uncertainty surrounding the direction of interest rates and inflation is hindering larger rates of growth. Nonetheless, strong business growth and households earning over CA$100,000 provided lucrative revenue niches for accountants. Revenue grew at a CAGR of 1.7% to an estimated CA$18.3 billion over the past five years, including an estimated 1.6% boost in 2025 alone. An evolving landscape and continuous investment in automated technology significantly impacted accountants’ workflow and profit margin. Growing AI investment from Big Four accounting firms, such as Deloitte and PwC, bolstered service efficiency and allowed basic accounting tasks, such as data organization and tax analysis, to be automated. Incumbent companies also improved their service offerings to include tax consulting and full-service consulting packages, which not only diversified their revenue streams but also helped them stand out in a competitive market. Moving forward, accountants are poised to benefit from stable macroeconomic conditions and positive trends across consumer and commercial markets. The anticipated rise in new business formations and consolidation in sectors such as finance and insurance will likely drive demand for accounting services. Continued acceleration of AI will also play a significant role, enabling firms to automate routine tasks, cut wage costs and boost profit. At the same time, the growing focus on ESG (environmental, social and governance) reporting and sustainability will open up new revenue streams for providers that can offer specialized expertise in these areas. Revenue is expected to grow at a CAGR of 1.7% to an estimated CA$19.9 billion over the next five years.

A graphic that displays the dollar performance against other currencies reveals that economic developments had mixed results on currency exchanges. The third quarter of 2023 marked a period of disinflation in the euro area, while China's projected growth was projected to go up. The United States economy was said to have a relatively strong performance in Q3 2023, although growing capital market interest rate and the resumption of student loan repayments might dampen this growth at the end of 2023. A relatively weak Japanese yen Q3 2023 saw pressure from investors towards Japanese authorities on how they would respond to the situation surrounding the Japanese yen. The USD/JPY rate was close to ***, whereas analysts suspected it should be around ** given the country's purchase power parity. The main reason for this disparity is said to be the differences in central bank interest rates between the United States, the euro area, and Japan. Any future aggressive changes from, especially the U.S. Fed might lower those differences. Financial markets responded somewhat disappoint when Japan did not announce major plans to tackle the situation. Potential rent decreases in 2024 Central bank rates peak in 2023, although it is expected that some of these will decline in early 2024. That said, analysts expect overall policies will remain restrictive. For example, the Bank of England's interest rate remained unchanged at **** percent in Q3 2023. It is believed the United Kingdom's central bank will ease its interest rate in 2024 but less than either the U.S. Fed or the European Central Bank. This should be a positive development for the pound compared to either the euro or the dollar.

Canadian lumber wholesalers have grappled with global lumber price volatility, creating challenging conditions both for wholesalers and for downstream clients like construction contractors, home improvement stores and hardware stores. In 2021 and 2022, the price of lumber soared globally as demand for new construction soared, especially in the United States. While exports and imports are not tracked at a wholesale level, many companies do sell across the border; as a result, conditions in the United States affect revenue. As lumber prices and Canadian residential construction activity have fallen from their respective 2021 and 2022 peaks, so too has revenue for the Lumber Wholesaling industry in Canada. With industry revenue forecast to remain level in 2025 alone, the overall industry is expected to have decreased at a five-year CAGR of 1.8% to reach $15.6 billion in 2025. The fate of wholesalers has largely been tied to the volatility of downstream construction markets. High interest rates stifled previously hot residential construction markets in both Canada in the US till both the Bank of Canada and the Federal Reserve began cutting rates. While this is set to improve construction activity, and therefore demand for lumber, both the Bank of Canada and the Federal Reserve have held rates steady in their most recent 2025 decisions as volatile US-Canada tariff policy has created an uncertain economic situation. The US and Canada have had an ongoing trade dispute over lumber prices since before the US put in place broader tariffs in April 2025. The uncertain business environment caused in part by these tariffs has kept the average industry profit margin from expanding through the end of 2025. Lumber wholesalers are expected to see growth moving forward. Interest rates are expected to be gradually cut over the coming years, stimulating demand from downstream construction markets. In tandem, the selling price of lumber is expected to climb, though it will not likely see the rampant inflation of recent years. Demand for housing construction in Canada demand is also set to remain strong into the near future. Consequently, industry revenue is forecast to expand at a CAGR of 1.4% to $15.6 billion over the five years through 2030.

Canadian waste collection service businesses have faced their share of ups and downs in recent years, largely influenced by shifting economic conditions. During the pandemic, a surge in residential waste was observed due to lockdowns and remote work, which led to increased generation of household waste, especially single-use plastics. Conversely, the nonresidential sector saw a decline in activity, with empty offices and reduced business operations causing a drop in demand for the industry’s services. As pandemic restrictions were lifted, increased consumer and corporate spending drove providers’ demand, though nonresidential construction was slow to rebound. In 2022, soaring inflation caused businesses and households to hold back on discretionary purchases, hindering waste generation and leading to a drop in revenue in that year. More recently, high interest rates, particularly since 2022, curbed residential construction and homeownership, severely constraining the residential segment. The Bank of Canada has reduced the cost of borrowing throughout 2024 and 2025, fostering solid revenue growth. Several key trends have also shaped the industry. The emphasis on recycling and waste diversion has grown, as provinces and municipalities pushed for reducing landfill contributions. Providers have adapted by expanding recycling capabilities, providing them with another valuable revenue stream. Market share concentration has expanded from 2020 to 2025, partially due to more mergers and acquisitions. This has enabled these companies to use economies of scale to reduce costs, raising profit. Overall, revenue for waste collection service businesses in Canada has inched upward at a CAGR of 1.5% over the past five years, reaching CA$7.9 billion in 2025. This includes a 2.0% rise in revenue in that year. Looking ahead, stable GDP growth and anticipated interest rate cuts bode well for the industry. Resurgence in both residential and nonresidential construction is expected to increase demand for waste collection services, bolstering revenue. Additionally, the growth in e-commerce presents a valuable opportunity, with increased packaging waste driving demand for efficient waste management solutions. However, potential challenges loom, including tariffs from the US which could impact economic growth and consumer spending. Overall, revenue for waste collection service providers in Canada is forecast to expand at a CAGR of 1.7% over the next five years, reaching CA$8.6 billion in 2030.