Today, the Honourable Chrystia Freeland, Canada’s Minister of Finance and Deputy Prime Minister, delivered the 2022 Fall Economic Statement in the House of Commons. This Statement, named Building an Economy that Works for Everyone, unveils the latest fiscal update. Minister Freeland warned of a potential recession in 2023 and provided information on the state of the nation’s economy as inflation and the impact of rising interest rates take effect on Canadians.
Building an Economy that Works for Everyone focuses on economic growth and helping Canadians with the increasing cost of living. Some of the most significant investments focus on affordable housing, jobs and skills training, clean technologies, and making life more affordable.
The federal deficit for the 2022-2023 fiscal year is $36.4 billion, much lower than the forecasted $52.8 billion in the spring budget. The government projects a $4.5 billion surplus by 2027-2028. However, the “downside” scenario indicates a deficit of $49.1 billion for this fiscal year.
The Statement’s new spending notes $22.1 billion over the next six years, with an added $8.5 billion as a provision for “anticipated near-term pressures”.
The projected real GDP growth is just above zero for the next several quarters. As a result, the unemployment rate is projected to increase from an average of 5.4% in 2022 to 6.2% by the end of 2023.
The government is proposing to provide $250 million over five years, starting in 2023-2024, for new programs through Employment and Social Development Canada to help Canadian workers thrive in a changing global economy. Specific measures include:
The government will also launch the Canada Growth Fund by the end of 2022, to make critical investments needed to meet Canada’s climate and economic goals. The Growth Fund will enable tailored investments based on a project or company’s need or risk, to help unlock private investment and create new jobs.
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Today, Ontario’s Minister of Finance, the Honourable Peter Bethlenfalvy, announced the 2022 Fall Economic Statement at Queen’s Park.
This afternoon, Peter Bethlenfalvy, Ontario’s Minister of Finance, delivered the 2022 Budget in the Ontario Legislature.