BREAKING: Gloomy prospect for Canada as federal budget deficit nears the $400bn mark

Canada’s budget deficit is set to hit the historical figure of C$381.6 billion as the federal government’s spending continues. The Trudeau government is also considering another C$100bn stimulus package once the virus is curtailed.

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Canada’s public debt is now set to top C$1.12 trillion with the deficit exceeding previous estimates of C$343.2bn.

“COVID-19 is surging across Canada, right now. We know the winter ahead will be hard”, Minister of Finance Chrystia Freeland said.

The additional stimulus package of C$100bn is expected to be rolled out over three years to “jumpstart” the Canadian economy.

Canada will find itself in an unenviable situation with a historically high deficit and weak projected economic growth. The current government has made clear its intentions to invest in “green” projects with a low return on investment.

We wrote about the staggering amount of open market operations and quantitative easing from the Bank of Canada earlier in October.

The federal government’s monetization of its mind-boggling deficit will likely lead to years of low growth, high inflation, and financial instability for Canadians.

Canada’s deficit has grown more than any other G20 countries during the pandemic yet the country’s unemployment is the highest of the G7 countries.

More details to come.

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