An economist with the Business Development Bank of Canada doesn't think Canada will experience a recession this year despite limited growth predictions.
BDC's Vice-President Research and Chief Economist Pierre Cleroux spoke to business leaders at a luncheon hosted by the Windsor Essex Chamber of Commerce this week.
He said Windsor-Essex could see even less growth than the rest of the country.
"What we are seeing more slowdown of the economy. 2025 is going to be very slow, and Windsor is going to be close to zero growth. But all will depend on how many tariffs are going to be imposed. Hopefully, they won't impose the tariff on parts and won't create a recession," said Cleroux.
He indicated that to avoid a recession and improve growth, Canada must reduce inter-provincial trade barriers, diversify, support local businesses, and foster entrepreneurs.
"We have to continue to look for Canadian products, and also businesses should do the same. We import a lot from the U.S., if we can replace some of the products we are importing with Canadian products that will benefit the Canadian economy," said Cleroux.
Eric Larson, president of the Downtown Detroit Partnership, who was also at the chamber event, said while he understands the sentiments, he is saddened by the need to step away from long-time partnerships.
"Much of what I've heard makes me sad, quite honestly. These are two great countries, countries that have been great friends and incredible allies, and to be having this conversation in this moment in time when there is so much opportunity is really a bit disappointing," said Larson.
Cleroux said he believes there's a way for Canada to diversify without damaging partnerships with the U.S.
"We could develop more, in different markets inside Canada and in the rest of the world without quitting the U.S. market so I don't see that in opposition, I see it as just to diversify," said Cleroux.