Quarterly economic outlook

Professional sports don’t often serve up suitable parallels to the complex dynamics of national economies and financial markets. However, 2025 was an exception, at least for Canadian businesses, investors, and policymakers. Multiple Canada-based teams competed in their respective league championships against U.S. based rivals at a time of heightened trade and political frictions between Canada and its largest and wealthiest trade partner. Unfortunately, all of these matches ended in heartbreak for Canadian sports fans. While there are obvious risks to Canada’s economic performance in 2026, heartbreak isn’t guaranteed, and there are even some reasons to be hopeful.

A difficult year, politically and athletically

2025 was a challenging year for Canada. Trade and other political frictions with the Trump administration weren’t the entire story.

In October, the Toronto Blue Jays treated baseball fans to an impressive playoff run culminating in an American League pennant and World Series berth. A win over a U.S.-based rival would have been welcome news to anyone in an “elbows-up” frame of mind. Unfortunately, after taking the Los Angeles Dodgers, with Major League Baseball’s largest payroll, to a deciding game seven, the Jays fell short at home in extra innings by just one run.

In December, Major League Soccer’s (MLS) Vancouver Whitecaps embarked on their own magical playoff run, punching their ticket to the MLS Cup final after a memorable home win in blizzard conditions. But for the second time in two months, a Canadian team went head-to-head with its league’s highest-payroll team (in this case, Lionel Messi’s Inter Miami) before coming up short.

And of course, most hockey fans are aware of the more-than-30-year Stanley Cup drought for Canada-based National Hockey League (NHL) teams. The Edmonton Oilers had a shot at ending that streak in June of last year. But after pulling even with the Florida Panthers—once again, an opponent with its league’s highest-paid roster—through the first four matches, a U.S.-based opponent prolonged the pain for Canadian NHL teams.

Of course, when thinking about parallels between sports and political economy, it’s important to remember that the underdog Toronto Raptors won an NBA championship in 2019 against that league’s highest-paid roster. As difficult as 2025 was for Canadian sports fans, reaching three league finals is still an impressive feat, and victories are still possible.

Important information

SEI Investments Canada Company, a wholly owned subsidiary of SEI Investments Company, is the Manager of the SEI Funds inCanada.

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