The Price of Resilience: Why 2026 Demands a New Economic Playbook
Dr. Ruby Dhalla
I recently joined the country’s top economic minds at the Economic Club of Canada’s 2026 Outlook Breakfast. Attending this event has recently been a cornerstone of my January schedule. However, this year felt different. Between the cautious optimism of Bay Street and the urgent calls for tax reform, one thing is clear: for entrepreneurs and business leaders, the “status quo” is no longer an option. As I sat in the room with Canada’s leading economic voices, I found myself filtering their data through two distinct lenses: my past experience in the House of Commons and my current reality as President of the Dhalla Group.
As a CEO navigating the healthcare, hospitality, and real estate sectors, I see the real-world impact of these forecasts every day. We are at a crossroads where innovation must meet fiscal urgency.
The main question leaders ask in January 2026: Is Canada ready for a structural economic reset?
The consensus from the Chief Economists of Canada’s “Big Six” banks is nuanced: we are seeing a stabilization of inflation and interest rates, yet a profound sense of “uneven prosperity” persists across the country. For those of us leading firms in healthcare, real estate, and
hospitality, the message is clear: Resilience is the floor, but it cannot be the ceiling. Global tariffs now affect roughly 20% of goods traded worldwide, up from 13% the year prior. The fact that Canada avoided a technical recession does not say that we have a strong economic growth, we just experienced a fantastic stock market.
As I see it, the difference between a stagnant year and a transformative one for Canadian entrepreneurs will depend on our ability to turn these three critical economic headwinds into strategic advantages.
The Competitive Imperative: Reimagining Our Tax System One of the most striking takeaways from the 2026 outlook is the urgent call for a tax overhaul. Economists are increasingly vocal about a system that effectively penalizes risk-takers. As entrepreneurs, we
know that capital is mobile. If Canada is to attract the global investment necessary to jumpstart productivity, our fiscal framework must reward the ambition required to scale firms and drive innovation.
Structural Adjustments in Housing and Labor The “regional drag” of the housing market, particularly in Ontario, remains a significant hurdle for business growth. We are seeing a shift toward managing slower population growth, which requires a fundamental recalibration of how we forecast labor needs. In my experience with the Dhalla Group, attracting talent is no longer just about the role; it is about the broader ecosystem of affordability and opportunity.
Innovation as the Catalyst for Growth We are entering a pivotal moment where emerging technologies, specifically AI and digital commerce, offer a pathway to leapfrog traditional economic barriers. However, as Erin Elofson of Mastercard Canada rightly noted, this ambition must be matched with urgency and collaboration.
My Mandate for 2026: As we move further into this year, my strategy for the Dhalla Group is no longer just about weathering the storm. It is about:
- Aggressive Innovation: Leveraging AI and digital commerce to offset the high costs of labor and operations.
- Vocal Advocacy: Using our platform to push for policy changes that reward risk-taking and entrepreneurship.
- Community-Centric Growth: Ensuring that as our businesses scale, we are actively contributing to the affordability and opportunity of the communities we serve.
The “Big Six” have given us the forecast, but as entrepreneurs, we are the ones who have to build the shelter. The road ahead requires the same “drive, determination, and courage” that defines the best of our business community. 2026 will be a challenging year, but in my opinion, it is also the year where the boldest players will secure their legacy.