The outlook for Canada's provinces has shifted dramatically in recent months. Photo by Getty Images

What a difference a couple of months can make.

Rewind the year a bit and Canada was watching its economy enter a tailspin. Gross domestic product contracted sharply in the second quarter as the drag on trade deepened to its worst since 1961, outside the pandemic, according to economists with Desjardins Group.

The outlook for central Canada, specifically Ontario and Manitoba — the two provinces most exposed to U.S. trade — was especially dire.

Now in the final stretch of the year many of those threats have shifted, and with them the outlook for Canada’s provinces, said Desjardins in its provincial forecast this week.

Compliance with the Canada-United-States-Mexico-Agreement (CUSMA)

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