Government of Canada Releases 2024 Fall Economic Statement
Ottawa, December 16, 2024 – The Government of Canada today released its 2024 Fall Economic Statement, which provides an update on the country’s economic and fiscal outlook and outlines the government’s plans for the coming year.
Economic Outlook
The economic outlook for Canada remains positive, with the economy projected to grow by 2.6% in 2023 and 2.4% in 2024. However, the government notes that the global economic environment is uncertain, with risks to growth including the war in Ukraine, rising inflation, and supply chain disruptions.
The unemployment rate is projected to remain low at 5.8% in 2023 and 5.5% in 2024. Inflation is expected to moderate to 3.1% in 2023 and 2.4% in 2024, down from the current high of 6.9%.
Fiscal Outlook
The government projects a deficit of $29.7 billion for 2023-24, down from $32.7 billion in 2022-23. The deficit is expected to continue to decline to $15.9 billion by 2027-28.
The government’s debt-to-GDP ratio is projected to rise to 51.1% by the end of 2024-25, but is expected to decline gradually to 47.3% by 2027-28.
Government Plans
The Fall Economic Statement outlines the government’s plans to address key economic challenges, including:
- Supporting growth: The government will invest in infrastructure, workforce development, and innovation to support long-term economic growth.
- Combating inflation: The government will maintain its commitment to bringing inflation back to its target of 2%. This includes ongoing efforts to address supply chain disruptions and support the supply of affordable goods and services.
- Reducing the deficit: The government will continue to implement measures to reduce the deficit and stabilize the debt-to-GDP ratio.
- Making life more affordable for Canadians: The government will provide targeted support to Canadians facing financial challenges, including measures to increase the supply of affordable housing and reduce childcare costs.
Key Announcements
The Fall Economic Statement includes a number of key announcements, including:
- Extension of the Canada Recovery Benefit: The government will extend the Canada Recovery Benefit for an additional year, providing income support to workers who have lost their jobs or seen their hours reduced due to COVID-19.
- New investment in affordable housing: The government will invest $2.5 billion in new affordable housing initiatives, including support for the construction of new units and the renovation of existing ones.
- Reduction in childcare costs: The government will reduce childcare fees for families by 50% on average by 2026.
- Support for clean technology: The government will invest $15 billion in clean technology initiatives, including tax breaks for businesses and support for the development of new technologies.
Conclusion
The Government of Canada’s 2024 Fall Economic Statement provides a positive outlook for the economy, but also recognizes the challenges that Canada faces. The government’s plans to support growth, combat inflation, reduce the deficit, and make life more affordable for Canadians will help to ensure that the country remains strong and prosperous in the years to come.
Government of Canada releases 2024 Fall Economic Statement
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