Experts predict economic growth in 2025, but slower and more volatile
Still, many analysts believe the TSX has a solid foundation to support its continued growth.
Brianne Gardner, senior wealth manager at Raymond James Ltd. Velocity Investment Partners, said a broad rise in corporate profits and earnings and lower Bank of Canada interest rates will “help push stocks to new records.”
She said TSX’s growth is expected to be supported by strong commodity prices, particularly in the energy and materials industries, which are expected to rebound in 2025.
The federal government has recently increased investments in Canada’s infrastructure in an effort to increase housing numbers in the coming years, which could help reinvigorate the materials industry in the index.
Gardner said a weaker Canadian dollar could also be good for the stock market, attracting more foreign investment to Canada.
She said Canada’s financial sector has maintained solid performance and expects a modest boost from upcoming mortgage renewals, laying the groundwork for further profitability in the sector.
Gardner said further rate cuts, albeit smaller than those in 2024, would also drive stocks higher, “which is why we expect more upside ahead.”
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The TSX is expected to underperform the S&P 500
Kulkafas said consumer resilience, softening inflation levels and rising wages also benefited the Canadian index, boosting consumer and business confidence.
