Deputy Prime Minister welcomes International Monetary Fund report highlighting resiliency of Canadian economy
News release
October 12, 2022 - Ottawa, Canada - Department of Finance Canada
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, welcomed the International Monetary Fund (IMF)’s annual Article IV concluding statement, which highlighted the resiliency of the Canadian economy in the context of an increasingly difficult global economy with the global challenges of high inflation, rising interest rates, and slowing economic growth.
The IMF noted Canada’s tightened fiscal stance, having now unwound emergency pandemic support. It also praised the federal government’s deficit reduction and the publication of long-term fiscal projections as “welcome steps toward strengthening the fiscal framework.” The IMF’s latest projections also show that Canada is expected to have the smallest deficit this year as a share of GDP among G7 countries, and still by far the lowest general government net debt as a share of GDP in the G7. As was reaffirmed in Budget 2022, the government is committed to reducing the federal deficit and debt-to-GDP ratio as our fiscal anchor.
In regard to addressing affordability challenges, the IMF supports a government approach to provide Canadians with “limited and highly targeted programs to buffer vulnerable households from high fuel and food prices.” The government’s Affordability Plan is doing just that, with a suite of targeted measures for the Canadians who need it most.
The report also drew attention to the work the government is doing to address the housing affordability challenge facing many Canadians. Specifically, the IMF noted the positive impact that the launch of the Housing Accelerator Fund will have in boosting housing development.
The IMF noted Canada’s ambitious emission reduction targets and supporting policy measures, and continued to commend Canada’s price on pollution, while stating that Canada is a role model in its “generous commitments of climate financing for developing nations.”
Quotes
“The world is living through a challenging economic period right now, and Canada is not immune to these challenges. Our government is committed to continue building an economy that works for everyone where no one gets left behind. Despite these current global economic headwinds, I am pleased to note that the IMF confirms that Canada remains, and is projected to be for years to come, the leader in the G7 in terms of fiscal responsibility, and among the leaders in terms of economic growth and overall government deficit reduction.”
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
Quick facts
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The IMF’s annual Article IV missions assess the economic and financial developments in a country and include discussions with government officials, central bank officials, and representatives of business, labour unions, and civil society.
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Canada is expected to have the lowest total government deficit as a percentage of GDP in the G7 this year—a track Canada is forecasted to maintain for the next three years.
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Canada is also expected to have the lowest net debt burden as a share of GDP in the G7. Canada’s debt-to-GDP ratio of 30.5 per cent in 2022 compares well to the average among G7 countries of 95.6 per cent.
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The IMF is projecting that real GDP in Canada will expand by 3.3 per cent in 2022 and 1.5 per cent in 2023.
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Contacts
Media may contact:
Adrienne Vaupshas
Press Secretary
Office of the Deputy Prime Minister and Minister of Finance
Adrienne.Vaupshas@fin.gc.ca
Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000
General enquiries
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