Pandemic Leaves Its Mark: Canada’s Fiscal Policy Outlook to 2045

The Conference Board of Canada, 13 pages, November 25, 2021
Issue Briefing
(You must be signed in and entitled to rate this report)


This annual economic forecast presents Canada's long-term fiscal policy outlook.

Document Highlights

  • The COVID-19 pandemic has reset fiscal policy in Canada, pushing the federal and collective provincial governments into historic deficits that will linger throughout much of the long term.
  • The deficits were necessary, as governments acted as a critical safety net for the economy by doling out essential support for individuals and businesses alike.
  • With most of the income support ending, governments will soon shift to cost restraint to avoid adding further to their record debt levels.
  • Prior to the outbreak, governments were already facing an uphill fiscal battle due to Canada’s aging demographics. The inevitable senior population tsunami will simultaneously weigh on revenue growth and elevate demand for health care services.
  • We expect the federal and collective provincial governments to remain in deficit over the next two decades, before reaching a surplus in the early 2040s.

Table of Contents

Key Findings
Overview
Federal Outlook
Provincial Outlook
Municipal Governments
Methodology

COVID-19: Get all the insights

To see if you are entitled to get this research for free, take a minute and create a free e-Library account. This will let us determine if someone else at your organization has already purchased access to this material.

Browse by...
Need Help?