The continued weakness in Canada’s economic data could push the country’s central bank to cut by spring of next year, one economist says.

Dawn Desjardins, chief economist at Deloitte Canada, told BNN Bloomberg in a television interview on Friday that the Bank of Canada could soon be in a position to cut rates, as the latest gross domestic product data shows a stagnant economy.

While the preliminary data released by Statistics Canada showed a GDP expansion of 0.1 per cent in November, the month prior revealed a flat read.

“The fact that we’re going to see potentially a 0.1-per-cent gain … does suggest just a sluggish economy as we round out 2023,” Desjardins said.

She believes the consumer will be the driver of Canada’s economic slowdown, while she also anticipates softness in the country’s housing market to continue. This expected weakness should be enough for the Bank of Canada to begin to cut rates in 2024, she added.

“We think the bank will be in a position to start to lower those rates,” she said.

Desjardins is forecasting three rate cuts next year, beginning as soon as April, but cautions that this will depend on inflation’s continued decline.

“We’ve seen the inflation rate stall out at 3.1 per cent and we do think it’s going to move lower,” she said.

In this environment, she said the bank will have to be deliberate in its actions to cut and will be encouraged by a further drop in the cost of living.

“We think price pressures will abate as we move into 2024,” Desjardins said.