In a fiscal update, the finance ministry said the deficit would be C$144.5 billion ($112.4 billion), down 6.6% from the C$154.7 billion forecast in April.
“Canada has largely recovered from the economic damage inflicted by COVID-19 and is poised for robust growth in the months to come,” Finance Minister Chrystia Freeland said in a prepared speech, adding the fight against COVID-19 remained “our most important national project.”
Ottawa though cut its forecast for 2021 real gross domestic product to 4.6% from 5.8% in April’s budget, citing disruptions in global supply chains.
The fiscal update document forecast Canada’s debt-to-GDP ratio would be 48.0% in 2021/22, versus 51.2% forecast in April, falling to 44.0% in 2026/27.
Source: Economy - investing.com
