Investing in the Middle Class Is Sound Fiscal Management
December 22, 2017 – Ottawa, Ontario – Department of Finance Canada
The Government of Canada is focused on investing in the economy so that it works for the middle class and those working hard to join it. The investments the Government has made in people, in communities and in the economy are working: Canada now has the fastest-growing economy in the G7 and among the fastest job growth in a decade, having created almost 600,000 jobs since 2015. The Government remains committed to sound fiscal management—balancing the need to make smart investments to support long-term economic growth while preserving Canada's low-debt advantage for current and future generations.
Today, the Department of Finance Canada released its annual Update of Long-Term Economic and Fiscal Projections, based on figures in the 2017 Fall Economic Statement.
As a result of the better medium-term fiscal outlook, the projections are significantly improved compared to those last published in December 2016. Federal public finances continue to be sustainable, with the debt-to-GDP (gross domestic product) ratio still projected to be on a downward track. These projections are similar to those published by the Office of the Parliamentary Budget Officer in its Fiscal Sustainability Report 2017, which also suggest that federal public finances are sustainable over the long term.
These long-term projections extend over several decades and are subject to a fair degree of uncertainty. They are not to be interpreted as a forecast into the future, but rather should be taken as scenarios that could occur based on current trends and a reasonable set of demographic, economic and fiscal assumptions. The projections extend to 2055–56 and are intended to provide a broad analysis of the Government's fiscal position to allow the Government to respond to challenges and ensure fiscal sustainability.
The Government understands that improving the economic participation of groups traditionally under-represented in the labour market, including women, Indigenous peoples, older workers, newcomers and persons with disabilities, is key to Canada's long-term fiscal and economic performance.
"We have an ambitious plan to grow Canada's economy by investing in people, growing the middle class and helping those working hard to join it. Our plan is working. Our economy is growing and has created almost 600,000 jobs since 2015. We want all Canadians to benefit, and the Government will continue to make smart investments to support long-term growth while helping Canadians to prepare for the opportunities that lie ahead."
- Bill Morneau, Minister of Finance
Media may contact:
Office of the Minister of Finance
Department of Finance Canada
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