“While economic growth will remain modest this year, there is little capacity for government to boost growth. The newly elected minority government is set to cut taxes and boost spending, but this will be overshadowed by provincial governments who largely remain in cost cutting mode. The fact that federal and provincial governments are running significant deficits when the economy is operating near its full potential creates the risk that deficits will balloon when the economy finally experiences a recession in the years ahead.”
“While economic growth will remain modest this year, there is little capacity for government to boost growth. The newly elected minority government is set to cut taxes and boost spending, but this will be overshadowed by provincial governments who largely remain in cost cutting mode. The fact that federal and provincial governments are running significant deficits when the economy is operating near its full potential creates the risk that deficits will balloon when the economy finally experiences a recession in the years ahead.”