Deficit to hit $29.4 billion this year!
According to the details of yesterday’s Liberal budget, the cumulative deficits for the next six years should reach $120 billion. For this year, the deficit will be $29.4 billion, three times what was announced during last fall’s election campaign. Economic growth projections are 1.6% for 2016 and 2.2% for 2017 and 2018. These estimates are based on crude-oil prices at $40 this year and $52 next year. Unless economic conditions improve more quickly than expected, it appears that the country will be in the red throughout the Liberal government’s mandate, with a projected deficit of $14 billion in 2020.
Canadian yields were up yesterday, and government bond issues will reach $133 billion this year. The loonie is stable this morning after falling overnight. Crude oil is down 1% and the greenback is rising against the euro for the fourth day in a row. At 10 a.m. today, we’ll be taking a look at New Home Sales south of the border.
Have a great day!
Emmanuel Tessier-Fleury
- Range of the day: 1.3000 – 1.3145