The labour market has also softened, with job growth slowing and the unemployment rate rising.
The labour market has also softened, with job growth slowing and the unemployment rate rising.
Between 2024/25 and 2027/28, the federal government has increased projected spending by $30.7 billion more than previously forecasted.
Annual inflation peaked at 8.1 per cent in June 2022, well above the bank’s 2 per cent target.
Even after inflation is brought to heel, Canadians should not expect interest rates to return to pre-pandemic levels.
Rising interest rates will put additional pressure on federal finances.
By 2028, the federal government will add a projected $131.8 billion in debt.