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.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals