In advance of the 2024 federal budget, 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, as well as to hear their views on the federal government's economic plan to unlock pathways to the middle class for the next generation.
The Deputy Prime Minister and economists discussed the resilience of the Canadian labour market and economy, which has created more than 1.1 million jobs since the pandemic and outpaced growth expectations. Wage growth has outpaced inflation for the past 12 months and inflation has fallen to 2.9 per cent-within the Bank of Canada's target range.
She reaffirmed the federal government's commitment to its fiscal anchor, and noted the government's efforts to refocus spending on the program and services that matter most to Canadians.
The Deputy Prime Minister and economists discussed the federal government's work to build more homes and make housing more affordable for Canadians. The $4 billion Housing Accelerator Fund is already fast-tracking the construction of more than 750,000 homes across Canada over the next decade. The Apartment Construction Loan Program is providing low-cost financing to build more than 101,000 new rental homes across the country by 2031-2032. The Tax-Free First Home Savings Account is unlocking pathways to homeownership for the more than 500,000 younger Canadians who are now saving for their first downpayment. And, the Canadian Mortgage Charter is protecting existing homeowners by providing tailored mortgage relief.
Ahead of Budget 2024, the federal government is taking further, bold action to unlock pathways to the middle class for the next generation. From building more homes, faster, to making life more affordable for Canadians, such as with the first phase of national universal pharmacare, to stabilizing prices, especially for groceries, the government's economic plan is unlocking a prosperous future for everyone.
Quick Facts
- In 2023, Canada avoided the shallow recession expected by some private sector economists, with real GDP rising by 1.1 per cent for the year-over three times higher than what was forecasted in Budget 2023 (0.3 per cent).
- Both the International Monetary Fund and the Organisation for Economic Co-operation and Development expect the Canadian economy to see the strongest growth in the G7 in 2025.
- Canada has created more than 1.1 million jobs since the pandemic. Wage growth has outpaced inflation for the past 12 months, and the unemployment rate of 5.7 per cent is near its historical low.
- Inflation in Canada was 2.9 per cent in January 2024, well below the June 2022 peak of 8.1 per cent.
- Canada maintains both the lowest deficit- and net debt-to-GDP ratios in the G7.
- The IMF expects Canada's net debt-to-GDP ratio to remain the lowest among G7 countries.
- In the first half of 2023, Canada received the third-most foreign direct investment, in gross dollar terms, of any country in the entire world-and that was more investment per capita than any of its G7 peers.
