Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, welcomed the International Monetary Fund (IMF)'s Staff Concluding Statement of the 2023 Article IV Mission, which highlighted Canada's resilient economy, stable fiscal outlook, clean economy plan, and actions to improve housing affordability.
The IMF's latest projections reaffirm Canada's position as the G7 country with the lowest deficit-to-GDP ratio in every year of the IMF's forecast horizon, and also confirmed that Canada's net debt-to-GDP ratio remains the lowest among the G7. The report noted "Canada is a strong fiscal performer", with an enviable fiscal position, and that the job market remains robust, supported by increasing immigration levels and strong labour force participation, which has been "bolstered by the government's investment in a Canada-wide early learning and child care system."
The IMF also noted the resilience of Canada's financial system in the face of recent global financial challenges, pointing specifically to Canada's robust regulatory framework and effective contingency tools to safeguard federally regulated financial institutions and protect insured deposits. The IMF also praised Canada's progress in strengthening anti-money laundering and anti-terrorist financing (AML/ATF) frameworks, and noted the role of the provinces in helping ensure the success of pan-Canadian efforts for beneficial ownership data collection and publication.
The government's recent investments to grow the clean economy were welcomed by the IMF. The report noted "Canada deserves substantial credit for its multipronged climate mitigation strategy centered around carbon pricing" and believes that these policies "should go a long way toward achieving its nationally determined [emissions reduction] contribution for 2030."
The IMF concluded by highlighting the government's actions to increase housing supply and address housing affordability challenges, including the new Housing Accelerator Fund, which provides incentives for municipalities to expand housing supply.
