Government welcomes OECD’s 2023 Economic Survey of Canada

From: Department of Finance Canada

News release

March 6, 2023 - Ottawa, Ontario - Department of Finance Canada

Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, welcomed the Organisation for Economic Co-operation and Development (OECD)’s 2023 Economic Survey of Canada.

The report highlights Canada’s strong recovery from the pandemic while underscoring the federal government’s fiscal strength, noting that Canada’s “fiscal deficit has declined rapidly” and “recent budgets have included savings through public spending efficiency gains”. Canada’s net debt-to-GDP ratios are well below the average for the OECD, the European Union, and the United States. This continued track record of fiscal strength has allowed the government to continue providing necessary, targeted economic support to help those who need it most.

The OECD’s updated economic forecasts positively reflect the resilience of the Canadian economy during a period of global economic uncertainty by projecting an improvement in GDP growth compared to its November forecasts, with growth expected to be 1.3 per cent in 2023 and 1.5 per cent in 2024. The OECD also projects that inflation will return to its target of 2 per cent by the end of 2024.

The OECD also commends Canada’s ambitious actions on climate change and recognizes the central role carbon pollution pricing has in Canada’s national climate plan as a way to “reduce emissions at a lower cost than other policies”. The report also emphasizes how “public investment, including in green energy projects, can spur activity and job creation in hard-hit regions”, and that the proposed federal carbon capture, utilization, and storage investment tax credit is “appropriately designed”.

The OECD “welcomes” recent investments in health care, including the Canada Dental Benefit, and highlighted Canada’s commitment to moving forward on plans to address key social-economic challenges. In particular, the OECD underscores the importance of the Canada-wide affordable early learning and child care system, which is already helping to reduce gender gaps and make life more affordable for Canadian families.

Finally, the OECD calls on Canada to continue improving productivity and investment growth, which “has weakened relative to the United States and other leading OECD economies”, and to continue its focus on reducing barriers to internal trade and on harmonizing rules governing trade and labour mobility between provinces and territories to improve competitiveness. The federal government agrees.

Quotes

“Canada’s economy has seen a remarkable recovery, with over 800,000 more Canadians working than before the pandemic and unemployment near its recent record low. As the OCED confirms in its 2023 Economic Survey of Canada, we are facing this period of global economic uncertainty from a position of fundamental strength. The OECD’s updated forecasts of higher economic growth and inflation returning to target by the end of next year are welcome signs of Canada’s economic resilience and the opportunities to come.”

- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

Quick facts

  • OECD Economic Surveys are periodic reviews of member and non-member economies that provide in-depth economic analysis and recommendations for policymakers. The report covers macroeconomic developments, monetary and fiscal policy, the housing market and environmental sustainability. 

  • Reviews of OECD members, including Canada, and some non-member economies, are on a two-year cycle, with select non-member countries also reviewed from time to time. 

  • Over 800,000 more Canadians are employed today compared to before the pandemic, and almost 150,000 new jobs were added in January.

  • At just 5 per cent, Canada’s unemployment rate is near its record low.

  • Canada has recovered 126 per cent of the jobs lost to COVID, compared to just 112 per cent in the United States.

  • Canada’s labour force participation rate for women in their prime working years reached a record 85.6 per cent, versus 76.9 per cent in the United States.

Associated links

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

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TTY: 613-369-3230
financepublic-financepublique@fin.gc.ca

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