Canada's Federal Deficit Exceeds $40B Cap, Economic Rebound Expected in 2025

The Parliamentary Budget Officer reports a $46.8 billion deficit for 2023-24, surpassing the government's fiscal commitment.

The federal deficit for the 2023-24 fiscal year is estimated at $46.8 billion, exceeding the $40 billion cap promised by Finance Minister Chrystia Freeland.
The final deficit figures will be confirmed with the release of the government's annual public accounts report this fall.
Economic growth is projected to remain weak in 2024 but is expected to rebound in 2025 with the help of interest rate cuts by the Bank of Canada.
The Bank of Canada is anticipated to reduce its policy rate to 2.75% by the second quarter of 2025 to stimulate economic activity.
The government's investments in housing, affordability, and economic growth are highlighted, though the fiscal target was not met.