Canadian Resilience Praised
The International Monetary Fund (IMF)’s ‘Staff Report for the 2022 Article IV Consultation’ continues to highlight the resilience of the Canadian economy in the context of high global inflation, rising interest rates, and slowing global growth. It notes Canada’s tightened fiscal and monetary policy stance, but bringing inflation down quickly and decisively remains the chief priority facing the Canadian and global economies. The report projects that inflation in Canada will return to the two per cent target by the end of 2024. It also praises the federal government’s deficit reduction plan and the publication of long-term fiscal projections as “welcome steps toward strengthening the fiscal framework.” Its latest projections show that Canada is expected to have the smallest deficit this year as a share of GDP among G7 countries, and by far the lowest general government net debt as a share of GDP in the G7.