TORONTO (Reuters) – Canadian Finance Minister Chrystia Freeland on Thursday unveiled an economic update, slashing 2023 real GDP forecast to 0.7%, but said the economy would avoid a recession, while announcing C$11.3 billion ($8.2 billion) in new spending this fiscal year and next.
The so-called Fall Economic Statement also proposes a refundable tax credits for clean technologies, a 2% tax on share buybacks, among others.
STORIES:
LINK:https://budget.gc.ca/fes-eea/2022/report-rapport/FES-EEA-2022-en.pdf
COMMENTS
REBEKAH YOUNG, VICE PRESIDENT AT SCOTIABANK
“My take on the update is that in isolation it is relatively well contained … the incremental stuff that markets will look at, the affordability measures, are really pretty small.”
“In isolation it is nothing to set off alarms about – inflation pressures that are going to change our outlook on growth or inflation or interest rates – but you can’t look at it in isolation. We know that once you add in provinces we’re up closer to C$23 billion (in affordability measures).”
“Overall, it’s not really restraint which is the message that the minister would like out there. They do continue to spend modest amounts and strong revenues have allowed that.”
(Reporting by Fergal Smith; Editing by Denny Thomas)
