Canada trims budget deficit forecasts for every year until 2030/31
SPY•Canada lowered its deficit forecasts for every fiscal year through 2030/31, including a C$62.3 billion deficit in 2026/27, while projecting slightly slower growth in 2026 and 2027 than it did in April.
1. Deficit forecasts lowered
The Canadian government lowered its budget deficit forecasts for every fiscal year through 2030/31. It now projects a C$62.3 billion deficit in 2026/27, compared with C$65.3 billion in its April forecast, and a C$62.5 billion deficit in 2027/28, versus C$63.1 billion.
2. Growth and debt outlook
The government forecast deficits of C$57.6 billion in 2028/29, C$53.4 billion in 2029/30 and C$52.9 billion in 2030/31. It projected real GDP growth of 1.0% in 2026 and 1.7% in 2027, down from April’s forecasts of 1.1% and 1.9%, respectively; growth is projected at 2.0% in both 2028 and 2029. The federal debt-to-GDP ratio is projected at 39.9% in 2026/27 and 40.2% in 2027/28, then relatively unchanged through 2030/31.
