4 June 2025 | Other

Experts see no major risks to Canada's economy from delayed budget

Experts see no major risks to Canada's economy from delayed budget

Canada's Prime Minister Mark Carney has postponed the budget presentation. Most economists surveyed by Bloomberg do not expect this delay to raise significant concerns among investors, though 9 out of 17 experts warned it could heighten economic uncertainty.

The government had initially projected a deficit of 62.3 billion Canadian dollars ($45.4 billion), but weaker-than-expected export and investment outlooks may further reduce tax revenues. This complicates keeping campaign promises for Carney, as he planned to spend about 130 billion Canadian dollars ($94.7 billion) over four years to transform the country's economy.

Despite these challenges, the surveyed economists believe that a short budget delay is unlikely to shake confidence in the government’s fiscal policy. Canada retains the highest credit rating from the two largest rating agencies, which analysts say helps stabilize investor sentiment. However, Bloomberg’s survey participants caution that federal debt could climb to 44% of GDP within two years.

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