Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, met with leading private sector economists to discuss their outlook on the Canadian and global economies, and to hear their views on the government's continued efforts to support Canadians.
The Deputy Prime Minister underscored the continued resilience of the Canadian economy, with over 1 million more Canadians employed today than before the pandemic. Canada maintains a positive economic outlook relative to international peers, with both the IMF and the OECD projecting that Canada will have the strongest economic growth in the G7 next year and DBRS Morningstar confirming Canada's triple-A credit rating last month. In addition, data published by the IMF last week in their World Economic Outlook reaffirms that Canada is on the right and responsible fiscal track. The report shows that Canada ranks as the country with the lowest net debt ratio in the G7 by a significant margin.
Their discussion noted that Canada is not immune to the challenges that economies around the world are facing, including in particular the continued challenge of stabilizing prices and elevated interest rates. The Deputy Prime Minister reaffirmed the government's commitment to responsible fiscal management while continuing to do everything it can to invest in Canadians. Participants discussed the government's ambitious housing plan, including the Housing Accelerator Fund that will build more homes, faster, and ensure that Canadians can afford a safe place to call home.
The Deputy Prime Minister also highlighted the government's recent introduction of Bill C-56, the Affordable Housing and Groceries Act, particularly the government's urgent action to help make life more affordable for Canadians by removing the GST on new rental housing construction across the country. The Deputy Prime Minister noted that the upcoming Fall Economic Statement will outline further actions to make life and housing more affordable for Canadians.
The Deputy Prime Minister and private sector economists also discussed the need to ensure that Canada remains a competitive place to do business, particularly in light of the substantial investments contained the U.S. Inflation Reduction Act. To support this, Canada has committed over $120 billion to spur clean growth and advance emissions reduction measures since 2015, including over $80 billion in recently announced investment tax credits in Budget 2023.
The government will continue working hard to deliver for Canadians by building more homes faster, by stabilizing prices, and by creating great careers.
Quick facts
- Since 2015, 2.3 million fewer Canadians are living in poverty. In 2015, 14.5 per cent of Canadians were living in poverty. By 2021, that number was down to 7.4 per cent.
- The government has strengthened the social safety net that millions of Canadians count on, from an enhanced Canada Workers Benefit, to creating the Canada Child Benefit, to a new Canadian Dental Care Plan- all while ensuring that Canada maintains the lowest deficit and net debt-to-GDP ratio in the G7.
- Canada is expected to have the fastest pace of fiscal consolidation between 2020 and 2023 among G7 countries.
- Canada is expected to maintain the lowest total government deficit-to-GDP ratio in the G7 this year-a track the IMF expects Canada will maintain.
