Canadian government economic update: 2024 growth forecast slashed, higher deficits to come

<p><span>Canada has published its&nbsp;Fall Economic Statement, the main points being growth forecasts have been cut and a series of higher budget deficits are to come for at least the next three fiscal years beginning in 2024/25.&nbsp;</span></p><p><span>Canada's finance ministry estimates 2024 growth at 0.4%</span></p><ul><li><span>this compares with the 1.5% forecast in the late March budget</span></li></ul><p><span>Said the federal debt-to-GDP ratio would increase for 2023/24 and 2024/25 fiscal years before starting to decline in 2025/26 &nbsp;&nbsp;</span><br></p><ul><li><span>deficit for 2023/24 fiscal year set to be little changed at C$40bn</span></li><li><span>will rise to C$38.4 bn in 2024/25 (larger than the C$35bn estimated in March)</span><br></li><li><span>for 2025/26 it will hit C$38.3bn (from C$26.8bn projected back in March)</span></li><li><span>2026/27 is seen at C$27.1bn (March forecast was&nbsp;C$15.8bn)</span></li></ul><p>USD/CAD little changed:</p><figure data-media-><img src="https://images.forexlive.com/images/usdcad%20canada%20fiscal%20update%2022%20November%202023_id_6b550915-d23f-4cc2-9f5d-b566d20fe94a_size900.jpg" alt="usdcad canada fiscal update 22 November 2023" width="1066" height="730" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/usdcad%20canada%20fiscal%20update%2022%20November%202023_id_6b550915-d23f-4cc2-9f5d-b566d20fe94a_size900.jpg" /></figure><p><br></p>

This article was written by Eamonn Sheridan at www.forexlive.com.