Government Investments Support Long-Term Growth
December 21, 2018 – Ottawa, Ontario – Department of Finance Canada
Canadians’ hard work, combined with investments by the Government of Canada, are delivering real results—a strong and growing economy, with more jobs and opportunities for the middle class. As it invests to strengthen and grow the middle class, and offer help to people working hard to join the middle class, the Government remains committed to sound fiscal management—balancing the need to make smart investments to support long-term economic growth while preserving Canada’s low-debt advantage for current and future generations.
Today, the Department of Finance Canada released its annual Update of Long-Term Economic and Fiscal Projections. This report provides long-term economic and fiscal projections to 2055–56, based on the medium-term forecast presented in the 2018 Fall Economic Statement.
Reflecting Canada’s economic strength, updated long-term projections indicate that federal public finances are sustainable over the longer term, with the federal debt-to-GDP (gross domestic product) ratio projected to be on a downward track over the entire projection horizon.
As with any projections extending over several decades, these long-term projections are subject to a fair degree of uncertainty. They should not be viewed as a forecast of the future, but rather as scenarios that could occur based on current economic trends and a reasonable set of demographic, economic and fiscal assumptions. The projections are intended to provide a broad analysis of the Government’s fiscal position, allowing the Government to respond effectively to upcoming challenges, while protecting the long-term sustainability of public finances.
“Our government has an ambitious plan to grow the economy in a way that benefits more people today—and over the long term. As we work toward building an economy that works for everyone, we are balancing smart investments in Canadians with sound fiscal management. It’s a plan that will help to support growth over the long term, and deliver more of the good, well-paying middle class jobs that Canadians can raise a family on, as they plan for their future.”
– Bill Morneau, Minister of Finance