Government welcomes the OECD’s 2021 Economic Survey of Canada
News release
March 11, 2021 - Ottawa, Ontario - Department of Finance Canada
Today, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, and the Minister of Middle Class Prosperity and Associate Minister of Finance, the Honourable Mona Fortier, welcomed the Organisation for Economic Co-operation and Development (OECD)’s 2021 Economic Survey of Canada. The report noted that Canada has suffered fewer COVID-19 related deaths than the OECD average, confirms that the Canadian economy remains well positioned to weather the COVID-19 pandemic, and estimates that Canada will see real gross domestic product (GDP) growth of around 4.7 percent this year, a significant upward revision from the OECD’s December estimate.
The OECD report outlined support for the government’s strategy of continuing to invest in the pandemic response and the economic recovery and noted that “prudent fiscal policy in the years prior to the pandemic has helped provide scope for a large stimulus.” The OECD found that the government’s quick action and broad support measures “will have bolstered output by around 5 percentage points of GDP in both 2020 and 2021, implying a considerably smaller increase in unemployment than would have occurred otherwise.”
The report noted that “Canada’s economy remains vulnerable in the ongoing COVID-19 crisis,” and that a “high priority on fiscal support should remain while the economy is fragile.” The OECD emphasized its view that the government should “continue fiscal support until the economic recovery is well underway.”
The report commented that “Canada’s federal system of government proved capable of a rapid and co-ordinated policy response. Low public debt prior to the crisis has helped provide headroom for substantial tax and spending measures.”
In looking forward to the challenges that lie ahead, the report highlighted the need to liberalize inter-provincial trade.
Quotes
“We understand that sizable support remains necessary and a bold stimulus will be necessary to create jobs and growth for Canadians, and offset the challenges and inequalities that have arisen during this pandemic. With the right policies in place, we can emerge from this crisis more resilient, with a stronger, healthier, more sustainable and inclusive economy for all Canadians.”
The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“Today’s report confirms that Canada has the right economic strategy to navigate the crisis and to come back stronger on the other side. However, we know that the pandemic has hit some groups harder than others, including youth, women and the BIPOC community. That’s why we are developing a framework to help inform new investments and track progress on Canadians’ quality of life, to ensure our growth plan will improve the lives of every single person from coast to coast to coast.”
The Honourable Mona Fortier, Minister of Middle Class Prosperity and Associate Minister of Finance
Quick facts
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The OECD 2021 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.
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The government’s rapid and comprehensive support measures have provided an unprecedented $407 billion – nearly 19 per cent of Canada’s GDP – in overall support to keep Canadians and Canadian businesses afloat, including $270 billion – or over 12 per cent of GDP – in direct support measures.
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Canada entered the pandemic in a position of strength, with the lowest net debt-to-GDP ratio among G7 peers, a position it still retains.
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Contacts
Media may contact:
Katherine Cuplinskas
Press Secretary
Deputy Prime Minister's Office
Katherine.Cuplinskas@dpmo-cvpm.gc.ca
Isabella Brisson
Press Secretary
Office of the Minister of Middle Class Prosperity and Associate Minister of Finance
isabella.brisson@canada.ca
Media Relations
Department of Finance Canada
fin.media-media.fin@canada.ca
613-369-4000
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