Budget officer projects considerably slower economy, declining federal deficit - EverythingGP

By Canadian Press

Oct 13, 2022 | 8:12 AM

OTTAWA — The parliamentary budget officer is projecting the economy will slow considerably in the second half of 2022 and remain weak next year as the Bank of Canada continues to raise interest rates.

In his latest economic and fiscal outlook, budget watchdog Yves Giroux says he expects the Bank of Canada to raise its key interest rate to four per cent by the end of the year before slashing it in late 2023 as inflation slows. 

The outlook also estimates the federal deficit will decline to $25.8 billion, or 0.9 per cent of GDP, for the 2022-23 fiscal year. 

The deficit was $97 billion, or 3.9 per cent of GDP, during the prior fiscal year. 

Adblock test (Why?)

Budget officer projects considerably slower economy, declining federal deficit - EverythingGP
Read More