December 16, 2019 – Ottawa, Ontario – Department of Finance Canada
Over the last four years, the Government of Canada has focused on Canadians and on the things that people need to build a better future for themselves and their families. Investments in people and in communities have helped to create an economy that is strong and growing. While our economy continues to grow, the Government recognizes that there remain too many people working harder to make ends meet.
The Government has heard these concerns and is committed to taking real and meaningful action by investing responsibly to build an economy that works for more people, while at the same time being vigilant about whatever challenges the future may bring.
Today, Finance Minister Bill Morneau released the 2019 Economic and Fiscal Update, which outlines the current state of Canada's economy, and provides an update on the Government's economic and fiscal outlook. In his remarks, Minister Morneau noted that:
- Canada's economy is sound and growing at a solid pace. Economic growth in Canada is on track to average 1.7 per cent in 2019 and 1.6 per cent in 2020—with Canada expected to be the second-fastest-growing economy among the Group of Seven (G7) countries.
- Canadians are creating good, well-paying jobs. In the last four years, the hard work of Canadians has helped to create more than one million new jobs—most of them full-time—pushing unemployment rates to historic lows in 2019.
- Canadians' wages are growing. For the average Canadian worker, wage growth is outpacing inflation. If current trends continue, 2019 could mark the strongest year of wage growth in close to a decade.
- Business profits are solid. Businesses in Canada are now recording higher-than-average after-tax profits—boosting their competitiveness and setting the stage for further investments and the creation of more good, well-paying jobs.
- Canada's net debt-to-GDP (gross domestic product) ratio remains the lowest in the G7, keeping our country in an enviable position among our peers. Our relatively low level of debt is a major competitive advantage, which the Government is fully committed to maintaining in an increasingly volatile and unpredictable world.
- The budgetary deficit reflects investments that help keep the economy strong and growing—with the deficit projected to be $26.6 billion in 2019–20, improving to $11.6 billion by 2024–25.
The 2019 Economic and Fiscal Update also signals the Government's intention to launch a consultation with accounting experts and stakeholders in the coming months on the idea of adopting a new, more transparent way of accounting for gains and losses in the Government's financial reporting.