Fiscal Balance in Canada
Canada maintained a relatively stable fiscal position from 2013 to 2019, with efforts to manage the deficit effectively. However, the COVID-19 pandemic in 2020 led to a significant increase in the deficit due to emergency spending and economic support measures. By 2022, while the economy was recovering, the government faced the challenge of reducing the enlarged deficit, balancing the need for continued economic support with long-term fiscal sustainability.
The fiscal balance in Canada averaged -1.8% of GDP in the decade to 2022, above the average for Major Economies of -4.5% of GDP. The fiscal balance in 2022 was -0.8% of GDP. For more fiscal balance information, visit our dedicated page.
Canada Fiscal Balance Chart
Note: This chart displays Fiscal Balance (% of GDP) for Canada from 2014 to 2023.
Source: OECD.
Canada Fiscal Balance Data
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Fiscal Balance (% of GDP) | 0.4 | 0.0 | -10.9 | -2.9 | 0.1 |
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Canadian fiscal balance projections for the next ten years from a panel of 17 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable fiscal balance forecast available for Canadian fiscal balance.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Canadian fiscal balance projections.
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