SHOP, LULU, QSR: Canada’s GDP Forecast Cut by 20% as Energy Prices Soar

Accounting firm Deloitte has lowered its growth forecast for Canada’s economy by 20% as soaring energy costs impact both consumers and businesses across the country.

The big four accounting firm says that rising prices for oil and natural gas linked to the war in Iran will weigh on consumer spending, adding to a growing list of economic challenges and uncertainties facing Canada’s economy. Those challenges include U.S. tariffs and a weak labor market.

If there’s a silver lining it’s that Canada’s economy is expected to perform better in this year’s second half as energy prices abate and the labor market improves. “We’re making a couple of pretty big assumptions. One is that the energy market disruption will moderate over the next few months,” said Deloitte.

The current volatility is weighing on leading Canadian stocks such as Shopify (SHOP), Lululemon Athletica (LULU), and Restaurant Brands International (QSR).

The Outlook for Canada

In its report, Deloitte said Canada’s real gross domestic product (GDP) is set to grow 1.2% this year after booking a 1.7% gain in 2025. In January, the firm forecast that Canada’s GDP would rise by 1.5%. The downgrade comes as crude oil prices continue to rise by double-digits with no end to the Iran war.

Across Canada, the average price for a liter of gasoline has risen 30% since the war started on Feb. 28. Analysts say that fuel prices are likely to remain high through the summer months this year. Until there is some relief in energy costs, Canada’s economy is likely to be negatively impacted, concluded Deloitte.

Is LULU Stock a Buy?

Lululemon Athletica’s stock has a consensus Hold rating among 21 Wall Street analysts. That rating is based on one Buy and 20 Hold recommendations issued in the last three months. The average LULU price target of $182.41 implies 22% upside from current levels.