The Spring Economic Update reiterated Prime Minister Carney’s key themes: moving the economy from one of reliance to one of resilience by diversifying trade (a relentless pace of new trade deals with the world) and becoming stronger at home (major projects announced and in the works). Foreign direct investment in Canada at $100 billion is at a two-decade high. Added themes emphasized in the Update are responsible fiscal management (lower projected deficits and balancing operating spending with revenue by 2028/29) and supporting Canadians under pressure (there will be more of those).
The Economic Update is long on what we can control and need to do, but short on what we cannot control – our neighbour to the south and its attitude to trade with us. There will be much more to say about that in the face of all the noise that will come out of Washington in the weeks ahead.
The Government’s plan announced or summarized in the Economic Update includes:
- Building Canada Strong with a national sovereign wealth fund Canadians can invest in, the Major Projects Office, defence industrial strategy and an upcoming investment summit.
- Supporting workers with a focus on skilled trade workers, tax measures to support employee ownership and lowering the pension plan contribution rate.
- Making life more affordable with a raft if measures focused on construction, housing and those most in need.
- Safe and Stronger Communities including additional funding for the Canada Community Security Program to help communities at risk respond to evolving security challenges, and the establishment of the Financial Crimes Agency to disrupt organized crime networks.
The links to the Spring Economic Update can be found here.