Ottawa, Ontario – Department of Finance
Finance Minister Joe Oliver today met with Canada’s leading private sector economists to gather their views on the Canadian and world economies. This meeting comes ahead of the release of Economic Action Plan 2015 on April 21st.
The economists noted that the sharp decline in global crude oil prices and weak global economy were affecting Canada’s economy. However, they also noted that Canada’s underlying economic fundamentals remain strong, and that they expect real gross domestic product (GDP) growth to average about 2 per cent for 2015 as a whole.
The consensus at today’s meeting was that despite the elevated level of uncertainty surrounding the economic outlook, the average forecast in the March survey of private sector economists is a reasonable basis for fiscal planning.
The average of private sector economic forecasts forms the basis for the Department of Finance’s economic and fiscal planning assumptions. This ensures objectivity in the fiscal forecast—a practice supported by the International Monetary Fund—ahead of Economic Action Plan 2015 on April 21st.
- The Government has reiterated that it will balance the budget in Economic Action Plan 2015.
- Canada has the lowest net debt-to-GDP ratio in the Group of Seven (G-7), with AAA credit ratings and a stable outlook from all the major credit rating agencies.
- Canada has created more than 1.2 million net new jobs since the depths of the recession—one of the strongest job creation records in the G-7.
- According to KPMG, total business tax costs in Canada are the lowest in the G-7 and 46% lower than those in the United States.
"Our Government's low-tax plan for jobs, growth and fiscal stability is keeping us on track to balance the budget this year, while putting money back in the pockets of hard-working Canadian families. But we have more work to do—we face a struggling world economy and low oil prices. Reflecting that challenge, the budget I table on April 21st will include new action to create jobs, enhance growth and ensure long term prosperity."
- Joe Oliver, Minister of Finance