Canada's Economic Outlook: Strong Growth and Declining Budget Deficit
Impressive Growth Forecasts
As per the Bank of Canada's April Monetary Policy Report, the Canadian economy is projected to experience significant growth in the coming years. This year, growth is forecast at a robust 15%, followed by a further 22% expansion in 2024. These forecasts indicate a positive outlook for the Canadian economy.
Declining Budget Deficit
Canada's budgetary deficit has witnessed a substantial decline in recent years. In 2022-23, the deficit stood at 13% of GDP, a significant improvement from the 36% deficit recorded in 2021-22. Before considering net actuarial losses, the budgetary deficit was even lower, reaching 0.9% of GDP.
Historical Context
The budgetary deficit in 2021-22 was 36% of GDP, down from a staggering 149% deficit in 2020-21. This significant reduction in the deficit reflects the government's commitment to fiscal consolidation.
Government's Fiscal Plan
The Canadian government's economic plan has been effective in promoting fiscal consolidation. Since the onset of the pandemic, Canada has achieved the fastest rate of fiscal consolidation among G7 countries. As a result, the government has maintained a strong fiscal position.
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