In this edition:
- Ontario introduces HST relief legislation for new homes
- Canadian economy held back by weaker demand and growing business caution, new study reports
- Canada posts first goods trade surplus since September
- Association of Equipment Manufacturers report shows sector is showing resilience
- Services trade slips into slight deficit
- International student population sees sharp decline
- Focus on Technology
Did you know you can get the GNCC’s Daily Update emailed to you? Click here to sign up.
Photo credit: vadim yerofeyev / Adobe Stock
Ontario introduces HST relief legislation for new homes
Today, the Ontario government introduced the HST Relief Implementation Act (Residential Property Rebates), 2026 to support the implementation of the province’s 13 per cent HST relief on eligible new homes, which is being delivered in partnership with the federal government. This initiative would provide buyers of most new homes in Ontario with up to $130,000 in relief and could stimulate an additional 8,000 housing starts in Ontario next year. The Government of Ontario estimates that this would support up to 21,000 jobs and boost Ontario’s GDP growth by $2.7 billion.
Photo credit: Roman / Adobe Stock
Canadian economy held back by weaker demand and growing business caution, new study reports
On the surface, Canada’s economy is stable and edging slightly upward. Beneath the surface, growth for all is not guaranteed. The Business Data Lab’s (BDL) Q1 2026 Business Insights Quarterly (BIQ), released today, reveals a slowdown, as weaker demand and growing caution hold back business success.
That caution is showing up across the economy. Business outlook has now been below neutral for seven straight quarters, and confidence — especially among exporters — continues to weaken. At the same time, growth is becoming more uneven: Larger firms continue to hire and expand, while small and mid-sized businesses remain constrained, widening the gap across the economy.
Picture credit: Abubakar / Adobe Stock
Canada posts first goods trade surplus since September
Canada’s merchandise exports rose 8.5% in March to $72.8 billion, while imports fell 1.6%, moving the country from a $5.1-billion deficit in February to a $1.8-billion surplus — its first goods trade surplus since September 2025. Statistics Canada said the gain was led by gold and crude oil exports, while motor vehicle and parts exports also rose 4.5%, reflecting higher Canadian auto production. For Niagara businesses, the widening trade surplus with the United States — up to $7.1 billion — is notable given the region’s manufacturing, logistics, border, and export exposure.
Photo credit: 安琦 王 / Adobe Stock
Association of Equipment Manufacturers report shows sector is showing resilience
The Association of Equipment Manufacturers (AEM) released its triennial report, “The Economic Impact of the Canadian Equipment Manufacturing Industry.” The report finds that the industry experienced overall growth compared to 2022, with an 11 per cent increase in sales and 3.3 per cent growth in employment.
Picture credit: A Stockphoto / Adobe Stock
Services trade slips into slight deficit
Canada’s international trade in services moved from a slight $100-million surplus in February to a $100-million deficit in March, as service imports rose 1.7% to $20.4 billion and exports increased 0.5% to the same level. Statistics Canada said higher imports of commercial services, especially financial services, drove most of the increase, while travel service exports fell 0.5%. Combined goods and services trade still posted a $1.7-billion surplus, supported by a sharp rise in goods exports — a relevant signal for Niagara businesses tied to trade, transportation, tourism, and cross-border services.
Picture credit: Nejron Photo / Adobe Stock
International student population sees sharp decline
The number of full-time international students at Canada’s public postsecondary institutions is estimated to have fallen by nearly one-third over the past two academic years, dropping by about 124,000 students to roughly 300,000 in 2025/2026. Statistics Canada said Ontario is expected to see the largest decline, with an estimated loss of 92,000 students in 2025/2026 compared with 2023/2024.
In colleges, the loss is estimated at 102,188 new students (-75%) compared with 2023/2024, according to preliminary estimates. The decline is smaller for new cohorts in 2025/2026 in university, with estimated losses of 36,740 (-46%) compared with new cohorts in 2023/2024.
Focus on Technology
America doesn’t need to invade Canada. It has our data
Julie Sobowale, The Walrus
Through the Daily Updates, the GNCC aims to deliver important business news in a timely manner. We disseminate all news and information we feel will be important to businesses. Inclusion in the Daily Update is not an endorsement by the GNCC.
