Economy 52,844 Posted October 13, 2022 Share Posted October 13, 2022 https://www.bnnbloomberg.ca/federal-deficit-expected-to-be-far-smaller-than-forecast-pbo-1.1831995 Canada's Deficit for this year was budgeted for $52.8 Billion instead it is now forecast to be only $26.8 Billion or a little over 1% of GDP Rising nominal incomes and Corporate profits due to inflation, higher than expected economic growth in the first half of the year, and higher Oil Prices than expected (Canada's largest export) have all contributed to much better than expected revenues Higher Oil prices and other commodities also helped Canada since 2021 to consistently run trade surpluses most months, something that was not occuring since 2008 as the Country ran mainly trade deficits Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 13, 2022 Author Share Posted October 13, 2022 @GagaSine @OBEY @LaLa @JustinTrudeau @Torontomonster Link to post Share on other sites More sharing options...
LaLa 19,898 Posted October 13, 2022 Share Posted October 13, 2022 Is this good for me somehow Link to post Share on other sites More sharing options...
Guest Posted October 13, 2022 Share Posted October 13, 2022 18 minutes ago, LaLa said: Is this good for me somehow Well, it makes for a more previsible economy in the upcoming months Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 13, 2022 Author Share Posted October 13, 2022 34 minutes ago, Lukas96 said: Well, it makes for a more previsible economy in the upcoming months Ok u got me. I don't know what that word means Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 13, 2022 Author Share Posted October 13, 2022 53 minutes ago, LaLa said: Is this good for me somehow Not directly at least not in the immediate term. But a country having healthy finances does mean it can respond to emergencies or future economic downturns with more ease. It also means things like having to raise taxes in the future are less likely Canada's Debt to GDP Ratio of less than 40% or GDP is very healthy. The lowest by far in the G7 and of large developed economies worth $1 Trillion or more only Australia is in even better shape However Canada also has a huge debt overhang in some Provinces. For example Ontario is the most indebted sub-sovereign (non-federal) Government in the world. Quebec has a lot of debt too That often gets overlooked but since Provinces are responsible for a considerable portion of taxes and spending, they are worth taking into account as well. Link to post Share on other sites More sharing options...
Dennis 8,391 Posted October 13, 2022 Share Posted October 13, 2022 Canada is one of the countries who are surprisingly profiting from the war in Ukraine. Norway is also another example. Since these countries are making record profit from energy exports. I think they need to step up their aid for Ukraine. If you're earning record profits because of a war, the least you can do is help people who are suffering because of this war. Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 13, 2022 Author Share Posted October 13, 2022 2 minutes ago, Dennis said: Canada is one of the countries who are surprisingly profiting from the war in Ukraine. Norway is also another example. Since these countries are making record profit from energy exports. I think they need to step up their aid for Ukraine. If you're earning record profits because of a war, the least you can do is help people who are suffering because of this war. And not just Oil... Canada exports a lot of grains and precious metals as well which also went up a lot In addition Canada also exports a lot of natural gas but maybe that one doesn't count cuz infrastructure limitations means the market prices for where Canada is able to export gas to are actually quite depressed atm and companies are barely breaking even But definitely Oil, Wheat, Barley, Canola, Copper, Zinc and Other precious metals benefited a lot from the war Although as usual, Western Canada always benefits the most from commodity booms like this especially Provinces Alberta and Saskatchewan... Alberta is even forecast to have a budget Surplus of up to $10 Billion this year for barely 4 million people and their economy is booming The parts of the Country where the majority of people live have a modest tie to these sectors at best which means for the country as a whole the main benefit is just financial revenue to the Federal Government which indirectly affects everyone. In terms of jobs and income growth it's very concentrated in a specific part of the Country Link to post Share on other sites More sharing options...
Guest Posted October 14, 2022 Share Posted October 14, 2022 On 10/13/2022 at 5:40 PM, Economy said: Ok u got me. I don't know what that word means same as predictable, for some reason i thought that word also existed in English Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 14, 2022 Author Share Posted October 14, 2022 1 hour ago, Lukas96 said: same as predictable, for some reason i thought that word also existed in English Ah ok... Well on that case regarding ur original comment I don't think it will impact the "predictability" of the economy at all over the next year unless they decide to spend this windfall now somehow but all the experts are telling them not to because inflation is high so it's a terrible time to I think it's more longer term this adds stability to Link to post Share on other sites More sharing options...
Guest Posted October 15, 2022 Share Posted October 15, 2022 19 hours ago, Economy said: I think it's more longer term this adds stability to definetely, that's part of what I meant with predictable, long term stability. As in a stable economy is easier to predict Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 16, 2022 Author Share Posted October 16, 2022 19 hours ago, Lukas96 said: definetely, that's part of what I meant with predictable, long term stability. As in a stable economy is easier to predict I think Canada is too leveraged overall tho to call it true stability. Consumer and Provincial debt is extremely high. One of the highest in the world along with Netherlands and Australia Link to post Share on other sites More sharing options...
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