OECD Recognizes Strength of Canada's Economy and Soundness of Government's Plan
July 23, 2018 – Ottawa, Ontario – Department of Finance Canada
The Government of Canada's plan to invest in the middle class is delivering growth that works for everyone, according to the Organisation for Economic Co-operation and Development (OECD) Economic Survey of Canada.
Finance Minister Bill Morneau welcomed today's release, which confirmed the strength of Canada's economy and the soundness of the Government's economic plan. Canada had the highest growth rate among G7 countries in 2017, and GDP growth is projected to remain solid in the coming year. The OECD report found that most Canadians are doing well when it comes to measures of well-being, including health, education and skills, personal security and the quality of the environment. The report also gave positive recognition to the Government's historic investments in infrastructure and its first-ever National Housing Strategy, as well as the expected positive impacts of the new Employment Insurance Parental Sharing Benefit.
The OECD report also assessed economic developments that may pose a risk to Canada's economic outlook, and found that the greatest uncertainty relates to the ongoing renegotiation of the North American Free Trade Agreement, as well as the imposition of other restrictions on trade, notably by the United States. An unexpected correction in the housing market also presents a risk, but is of lesser concern. The Government continues to monitor these issues and will ensure that any actions it takes will strengthen and grow the middle class, help people working hard to join the middle class, and grow the economy over the long term.
The OECD Economic Survey of Canada is a biennial report that provides in-depth analysis of the Canadian economy, along with recommendations for policymakers. The report covers macroeconomic developments, monetary and fiscal policy, the housing market and environmental sustainability. Special chapters in the 2018 Survey focus on making the most of immigration and increasing inclusiveness for women, youth and seniors. The Survey found that Canada's immigration system is highly successful and well run; and that women and youth will benefit from the Government's initiatives to advance gender equality and improve labour market information and skills training.
"Our government's plan – to invest in people, to strengthen and grow the middle class, and to build an economy that works for everyone – is working. While there is more work to be done, Canadians are better off today thanks to these investments. I'm pleased that the OECD has recognized the soundness of our plan and the benefits it is delivering for Canadians."
- Bill Morneau, Minister of Finance
Today's OECD report echoes the findings of the July 2018 final report of the International Monetary Fund's (IMF) annual Article IV Mission to Canada, which found that the Government of Canada's plan to invest in the middle class is leading to growth that works for everyone.
Since 2016, Canadians have created hundreds of thousands of jobs, pushing unemployment to 40-year lows.
Canada's federal debt-to-GDP (gross domestic product) ratio remains firmly on a downward track and the deficit-to-GDP ratio is projected to reach 0.5 per cent in 2022–23.
Canada's total government net debt-to-GDP ratio is the lowest among G7 countries.
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Office of the Minister of Finance
Department of Finance Canada
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