Canada government sees budget deficits gradually declining

FILE PHOTO: A Canadian dollar coin, commonly known as the “Loonie”, is pictured in this illustration picture taken in Toronto January 23, 2015. REUTERS/Mark Blinch/File Photo

OTTAWA, April 16 (Reuters) – The Canadian government on Tuesday forecast that budget deficits would gradually decline over the next five years and said growth over three of the next four years would be weaker than forecast last November.

In its annual budget, the finance ministry also said the federal debt-to-GDP ratio would decline steadily over the next five fiscal years ending in 2028/29.

The 2024/25 deficit is seen at C$39.8 billion, higher than the C$38.4 billion forecast in November before dipping to C$38.9 billion in 2025/26, up from C$38.3 billion.

In 2026/27 it is seen at C$30.8 billion, up from the C$27.1 billion seen in November before shrinking to C$26.8 billion in 2027/28, higher than the forecast C$23.8 billion.

Real GDP growth in 2024 is seen at 0.7% compared to the 0.5% forecast in November. In 2025 growth is seen at 1.9%, down from 2.2% in November, in 2026 it will be 2.2%,down from 2.4% and in 2027 it will be 2.1%, down from 2.2%.

(Reporting by David Ljunggren, editing by Fergal Smith)

((Reuters Ottawa bureau; [email protected]))

Keywords: CANADA BUDGET/FORECASTS