It’s been just over six months since the Liberal government promised to begin cranking up its efforts to improve the Canadian economy. But growth remains slow and employment numbers continue to see-saw.
Still, infrastructure money is now trickling into communities and tax benefits are reaching middle-class families.
In its March 2016 budget, Ottawa committed to a deficit of $29.4 billion to fund the government’s stimulus program, and another $29 billion deficit in fiscal 2017, with the price tag edging lower over a five-year period.
This week, TD Economics issued a separate report saying Ottawa could run larger deficits than anticipated — as much as $34 billion this year alone.
Federal Finance Minister Bill Morneau met Thursday with private-sector economists, who laid out where they saw growth heading this year and in 2017. The consensus was for growth of about 1.2% in 2016 and close to 2% next year. Not great, but going in the right direction, at least — a welcome change from the troubling start to this year, when the global collapse in oil prices and wildfires in Alberta pulled the country into a temporary downturn.
While global uncertainty hasn't helped matters, Morneau said the federal government will "work with whatever administration there is the United States,” adding that Canada will take "an approach that recognizes that trade is a positive, but that it has to show benefits to Americans and Canadians in order for people to feel engaged in the opportunities."
