Bill Morneau admits that the economy will slow down in 2018

Photo: Chris Young The canadian Press
In its most recent economic statement last fall, the minister Bill Morneau provided for a budget deficit of 19.9 billion in 2017-2018 — almost 9 billion less than previous forecasts.

London — The federal Finance minister acknowledges that the canadian economy is expanding rapidly, will slow down this year.

 

And one more reason, according to Bill Morneau, the government of canada continues to invest to support economic growth and job creation. The minister admits, however, that his government must recognize the importance of a sound management of public finances and meet its long-term goals of reduction of annual deficits.

 

In its most recent economic statement last fall, the minister projected a budget deficit of 19.9 billion in 2017-2018 — almost 9 billion less than forecast in its spring budget. Mr. Morneau felt that the deficit would decline over the next five years to reach 12.5 billion by 2022-2023. The projection for this year includes a provision of 1.5 billion “adjustment for risk” — a factor that may increase depending on the vagaries of the economy, for example the death of the free trade Agreement north american.

 

Asked Friday during his entry to the meeting of the liberal cabinet in London, Ontario, Mr. Morneau was awarded to its government the merit of the ” exceptional economic performance of Canada in 2017. It has been estimated that the measures adopted by the liberals to help the middle class have borne their fruit to support the economy.

 

The federal minister of Finance has acknowledged, however, that this growth would be “more modest” this year. “We face ongoing challenges, he said. The demographic challenges in the long term, risks elsewhere on the planet that may have an influence on the growth of [economic] world. So we need to stay the course and continue to foster the growth of our economy. “

 

In an internal note to the ministry of Finance, obtained by the English network of Radio-Canada thanks to the Law on access to information, predicted a rate of annual economic growth of 1.7 % over the next five years in Canada. This rate was 3.7 percent last year.

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