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The Parliamentary Budget Office lowered its 2026‑27 growth projections after fresh U.S. tariffs and Canadian counter‑measures, now expecting 0.9% real GDP growth in 2026 and 1.5% in 2027. It also raised the 2026‑27 deficit estimate to $63.3 billion and foresees the Bank of Canada raising rates to 2.75% by mid‑2027.
