Canadian Economy To Weaken Further, Deficits Will Rise Says PBO

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.

Pathetic.

Spencer Fernando

Photo – YouTube

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Jane
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Jane

Who knew it would be THIS bad, going into Trudeau’s second term ?!! ANY conservative out here that WARNED people NOT to vote Liberal in 2015 ( we’d seen what the FIRST Trudeau did to Canada..) and AGAIN in 2019, as they saw the jobs FLEEING Canada, en masse through his first term…. Canada is truly screwed under Trudeau, but at least those who vote for ‘freebies’ are happy as pigs in – well you know…@#$%

pancakerachelcorrie
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pancakerachelcorrie

cut spending

shawn harris
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Trudeau’s brillant plan for Canada’s economy is to throw more gasoline,( massively increase borrowing and spending), on to the raging inferno of what is the economic firestorm created by the dynamic duo of Morneau and Trudeau. These brainless twits still can’t understand that you can never borrow, tax and spend Canada and Canadians into prosperity, it has failed and will always fail. Yet Trudeau and Morneau will lie and spin this Parliamentary Budget Office news as proof that their plan is working and we will all be better off because of it. Must be all part of the larger plan… Read more »

NancyW
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NancyW

While the election was on, they kept saying a recession was coming soon too, if true, with no slant or lies from the media. The lieberals excuse to run us to even more debt still. They still don’t care about Canada, only the one Province with extra cash. I hope the lieberal paid media collapses first as it should but that also will not happen. We all knew this would happen.

Sue
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Sue

Is anyone shocked? Bloomberg was forecasting this for some time.
In my opinion, I think that we need to look at our options of getting away from the liberals. They are not going to serve us well. .

Sue
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Sue

I am not sure if anyone else noticed how in Justin’s meeting with the Yves-François Blanchet in the CBC photos how Justins body language was always leaning in toward him. He is slightly leaning towards Jagmeet. Mr. Scheer is getting the cold shoulder. That is who Justin will be working with, in my humble opinion.

Bruno
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Bruno

Sue you hit the nail on the head.Only the blind could not see that.

Sue
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Sue

Such a massive infliction on the country. It shows us what letting the unions and social justice warriors run the education system has gotten us.
Shame on us.

old white guy
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old white guy

Sue, you do realize that 63% of all Canadians vote the socialist line and socialism is what is slowly killing the country. The level of stupid in this country plus the greed of wanting something for nothing has become overwhelming.

Sue
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Sue

I do.

Donald O'Kane
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Donald O'Kane

Call a NON CONFIDENCE VOTE. Get the Lieberals out of our government forever!!!!!!!!!!!!!!!

Godot
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Godot

And remember, Statistics Canada is part of the Liberal Deep State. The specialize in creative statistics.

Brian Dougan
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If I may be facetious for a moment…In the not so distant future it will be like the Great Depression. All the men will be riding boxcars from town to town…looking for non-existent work. Riding on some railroad cars anyway; boxcars have largely been replaced by shipping containers. Incidentally; doesn’t the half-wit Trudope not know that recklessly raising taxes takes income from our pockets? We spend less; they get less tax revenue. That’s probably taught in grade nine. I guess Trudope and the other half-wit Moroneau are too busy planning their next crime.