Remarks by the Deputy Prime Minister and Minister of Finance on the launch of the pre-budget consultations

January 31, 2022

For nearly two years, Canadians have been grappling with COVID-19. And nearly two years ago, the pandemic triggered the steepest economic contraction in Canada since the Great Depression. At its worst, it cost 3 million Canadians their jobs as our GDP shrank by 17 per cent.

Today – and even in spite of Omicron – we are on a strong footing.

Over 88 per cent of eligible Canadians – those 5 years and older – have received one dose. Over 81 per cent of eligible Canadians – those 5 years and older – are fully vaccinated (two doses).

Canadians have put saving lives first. And that has meant the second lowest mortality rate in the G7.

And our economy has benefited from our approach, because from the outset of this pandemic, the most important economic policy has been a strong public health policy.

We see the results of that approach today.

We have already more than recovered the jobs lost to the COVID-19 recession, a healing which took eight months longer after the much milder 2008 recession. In fact, as of December – the most recently available data – Canada has recovered 108 per cent of the jobs lost at the peak of the pandemic, significantly outpacing the U.S. where just 84 per cent of lost jobs have been recovered so far.

Canada’s GDP has already returned to near pre-pandemic levels. Our GDP growth of 5.4 per cent, in the third quarter of 2021, outpaced the U.S., the U.K., Japan, and Australia. In its January World Economic Outlook Update, the IMF forecast that Canada will have the second-fastest GDP growth in the G7 this year, and that we will have the fastest GDP growth in the G7 next year.

Our focus on jobs and growth is working. Business bankruptcies are lower and about 2,000 more businesses are active in Canada today than before the pandemic.

Keeping the Canadian economy on life support as we went into the COVID-19 hibernation was expensive. But we knew that keeping Canadian families and businesses solvent – and preventing economic scarring – would help our economy rebound.

Our government remains committed to the fiscal anchors that we outlined in last spring’s budget. We’re committed to reducing the federal debt-to-GDP ratio and to unwinding COVID-19-related deficits. In October, we pivoted from necessary, but costly, broad-based support programs, to more targeted, less expensive measures. Our government will continue to be a responsible and careful fiscal manager.

Despite impressive economic resilience in many parts of the economy, we are mindful of elevated inflation and its impact on the cost of living for Canadians. We know that inflation is a global phenomenon driven by the unprecedented challenge of re-opening the world’s economy after COVID-19 lockdowns.

As we look to the years ahead, our focus must be on jobs and economic growth – priorities that will form the foundation of the budget.

And it is on that note that I am here today to announce the launch of pre-budget consultations, beginning today and continuing until February 25. I encourage all Canadians to take the time to share your priorities with us by visiting LetsTalkBudget2022.ca.

Over the coming weeks, the Minister of Tourism and Associate Minister of Finance, Randy Boissonnault, Parliamentary Secretaries Rachel Bendayan and Terry Beech, and I will be holding roundtables and conversations with Canadians across the country. These conversations are an opportunity to discuss the real challenges Canadians are facing – and Canadians’ ideas – so the government can continue to make the best investments for jobs and growth.

We want to hear what matters most to Canadians as we continue our work to make life more affordable and build an even stronger economy for the future.

Thank you.