More bad news for Canada’s economy.
The Parliamentary Budget Officer says Canada’s economic outlook is worse than expected.
As a result, Canada faces slower growth and even higher budget deficits.
As reported by BNN Bloomberg, “Justin Trudeau is starting his second term in worse fiscal shape than expected, meaning Canada’s finances will likely be pushed further into the red.
The Parliamentary Budget Office downgraded its outlook for the Canadian economy on Thursday and now expects deficits to be a cumulative $9.5 billion larger by the end of 2025 than it had previously forecast. The government agency, whose baseline estimates were used by political parties to cost their 2019 election platforms, said lower tax revenues and higher operating costs were the primary cause of the wider fiscal gap.”
According to the PBO, the 2021 budget deficit will be $19 billion, rather than the $15.4 billion previously projected.
Economic growth has also been downgraded.
Previously, GDP growth in 2020 and 2021 was expected to be 2.0% and 1.8%. Now, growth is expected to be 1.7% and 1.6%, which are incredibly weak numbers.
This is quite an ‘achievement’ by the Trudeau Liberals. Their economic policies are so bad that, even after raising taxes, they’re getting less revenue, while their spending keeps on increasing. Yet, that increased spending – which should be a temporary stimulus to growth – isn’t even working, as growth is weak and falling even further.
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