canada’s economy continues to inch closer to a recession next year though signs of easing inflation pressures improve the odds a downturn will be mild by historical standards according to royal bank of canada housingmarket activity looks to be nearing a bottom after a sharp correction over the spring and summer while the residual effect of higher interest rates will continue to ripple through and soften consumer spending in the quarters ahead the bank says it estimates higher household debt payments and inflation will cut an additional c3000 from purchasing power per household in 2023 at the same time rbc expects