Deputy Prime Minister welcomes International Monetary Fund findings on Canadian economy
News release
June 20, 2023 - Ottawa, Ontario - Department of Finance Canada
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, welcomed the International Monetary Fund (IMF)’s Staff Concluding Statement of the 2023 Article IV Mission, which highlighted Canada’s resilient economy, stable fiscal outlook, clean economy plan, and actions to improve housing affordability.
The IMF’s latest projections reaffirm Canada’s position as the G7 country with the lowest deficit-to-GDP ratio in every year of the IMF’s forecast horizon, and also confirmed that Canada’s net debt-to-GDP ratio remains the lowest among the G7. The report noted “Canada is a strong fiscal performer”, with an enviable fiscal position, and that the job market remains robust, supported by increasing immigration levels and strong labour force participation, which has been “bolstered by the government’s investment in a Canada-wide early learning and child care system.”
The IMF also noted the resilience of Canada’s financial system in the face of recent global financial challenges, pointing specifically to Canada’s robust regulatory framework and effective contingency tools to safeguard federally regulated financial institutions and protect insured deposits. The IMF also praised Canada’s progress in strengthening anti-money laundering and anti-terrorist financing (AML/ATF) frameworks, and noted the role of the provinces in helping ensure the success of pan-Canadian efforts for beneficial ownership data collection and publication.
The government’s recent investments to grow the clean economy were welcomed by the IMF. The report noted “Canada deserves substantial credit for its multipronged climate mitigation strategy centered around carbon pricing” and believes that these policies “should go a long way toward achieving its nationally determined [emissions reduction] contribution for 2030.”
The IMF concluded by highlighting the government’s actions to increase housing supply and address housing affordability challenges, including the new Housing Accelerator Fund, which provides incentives for municipalities to expand housing supply.
Quotes
“I welcome the IMF’s findings, which have today reaffirmed the resilience of the Canadian economy and our government’s record of fiscal responsibility. We will continue to take a balanced approach, which maintains Canada’s enviable fiscal position while supporting Canadians, growing our economy, and creating new opportunities for Canadian workers from coast to coast to coast.”
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 a country’s economic and financial developments, including through discussions with government and central bank officials, and representatives of business, labour unions, and civil society.
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Canada is expected to maintain the lowest total government deficit-to-GDP ratio in the G7 this year—a track the IMF expects Canada will maintain through the end of its forecasting horizon.
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Canada is also expected to maintain the lowest net debt-to-GDP ratio in the G7. Canada’s net debt-to-GDP ratio of 13.9 per cent in 2022 compares well to the average of 94.2 per cent among G7 countries.
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Contacts
Media may contact:
Katherine Cuplinskas
Press Secretary and Senior Communications Advisor
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca
Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000
General enquiries
Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca
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