
Canadian Government Revises Economic Growth, Budget Deficit Forecasts
While presenting his first update after the October elections, Finance Minister Bill Morneau expected the Canadian economy to grow at 1.7% in 2019 and slightly lower at 1.6% next year. In addition, the budget deficit is also expected to climb higher in 2020.
Canada’s budget deficit is estimated at CAD 26.6 billion in 2019-20, higher than the previously forecast deficit of CAD 19.8 billion. Morneau made these comments at a press conference, adding, “In 2020, we expect that we’re likely to be the second-strongest economy in terms of growth among G-7 countries.”
On the positive side, Morneau assured reporters that Canada has the lowest debt-to-GDP ratios among G7 countries at 31% and that there was no risk of a recession in the Canadian economy. The new government plans to increase the budget deficit to drive additional investments in infrastructure in a bid to boost the economic growth. In addition, Canadian PM Justin Trudeau also unveiled tax cuts for middle class consumers during the previous week.