PBO Says Budget Deficit Could Hit $113 BILLION

Forecast comes amid unprecedented government measures to respond to health & economic crisis and huge slowdown in economic activity.

The Parliamentary Budget Officer Yves Giroux is forecasting a potentially mammoth budget deficit, as the economy reels from the CCP Coronavirus Crisis.

According to the report, the deficit could hit $113 BILLION, and unemployment could reach 15%.

In the scenario forecast, GDP will decline by 2.5% in Q1 of 2020, and then by a stunning 25% in Q2. Canada’s GDP growth for the year would fall by 5.1%, the worst since 1962.

The scenario is based upon continued social distancing until August, and success in “flattening the curve” of the virus spread.

Additionally, the massive fall in oil prices has factored into these forecasts, with a serious drag on growth and employment in many parts of Canada, particularly Alberta.

Notably, the report indicates that the projected impact of this current crisis will be much larger than the 2008-2009 financial crisis.

You can read the full report here.

Spencer Fernando

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Joe
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Joe

Our government now has access to an unlimited supply of Canadian Dollars by the Bank of Canada.
It currently is set to issue a minimum 5 billion dollars a month to the current government starting today.
A lot of future debt is coming and these programs are terrible and will fail.
It does not account for all the new laws and policies being invoked on businesses…

jim
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jim

So do budgets balance themselves or not?

Ron Shaw
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Once this pandemic is over and cars trucks and industry start ramping up , this just might be the perfect storm timing for the Western provinces to separate as any hopes of fair , equal representation is again gone with the eastern elitist governments of the day . Your vote or mine in western Canada does not count , there is not even an eastern representative who can point out Edmonton or Calgary on a map of Canada , all the west is good for is milking the cow dry Now is the time to do better western Canada .… Read more »

Scott heron
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Scott heron

I’m glad this happening on Trudeau watch, if it was the conservatives , they would never seen the light of day ever again

Major Tom
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I’m not worried……Justin said the budget would balance itself…….