{"id":333101,"date":"2026-05-11T22:53:40","date_gmt":"2026-05-11T17:23:40","guid":{"rendered":"https:\/\/ebiztoday.news\/?p=333101"},"modified":"2026-05-11T22:53:40","modified_gmt":"2026-05-11T17:23:40","slug":"geopolitical-tension-now-seen-as-top-economic-risk-in-bank-of-canada-survey-national","status":"publish","type":"post","link":"https:\/\/ebiztoday.news\/index.php\/2026\/05\/11\/geopolitical-tension-now-seen-as-top-economic-risk-in-bank-of-canada-survey-national\/","title":{"rendered":"Geopolitical tension now seen as top economic risk in Bank of Canada survey – National"},"content":{"rendered":"

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Geopolitical tensions at the moment are considered an even bigger risk to Canada\u2019s economic productivity than trade conflict with countries just like the U.S, in accordance with the Bank of Canada\u2018s latest survey data.<\/p>\n

This comes because the Iran war continues to wage on after greater than two months without end, and after U.S. President Donald Trump rejected Iran\u2019s latest ceasefire proposal.<\/p>\n

The central bank released the outcomes of its Market Participants Survey for the primary quarter of 2026 on Monday, which was conducted from March 25 to April 1, 2026. It featured about 27 participants considered to be financial and business leaders working in banking, insurance, pension funds, asset management and research firms.<\/p>\n

Among the many categories, participants were asked to pick up to 3 downside risks to Canada\u2019s economic growth outlook.<\/p>\n

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Eighty-two per cent of respondents chosen increasing geopolitical tensions as a risk, which was probably the most common amongst all options provided.<\/p>\n

Meanwhile, 79 per cent selected worsening trade tensions and 57 per cent said it was tightening global financial conditions.<\/p>\n

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Along with the uncertainty of the conflict\u2019s long-term outlook, the Iran war is creating supply chain disruptions and strains on essentials like crude oil, natural gas, fertilizer and other materials that normally go through the Strait of Hormuz. With the narrow shipping channel essentially closed to most container ship traffic, prices are rising worldwide for items equivalent to food and gasoline as supplies run low.<\/p>\n

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On food prices, a UN agency warned last month that the Iran war could cause a food \u201ccatastrophe\u201d later this yr if it continues unabated.<\/p>\n

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