Canada Stays the Course on Budget Amid Improving Economy

Last year, Canada pledged to spend roughly 24 billion Canadian dollars ($18 billion) in infrastructure by 2020 in an effort to spur growth. It also introduced tax breaks targeted at middle-income earners and households with children

.. Deficits will remain a mainstay in Canadian public finances for the foreseeable future. Ottawa projects a deficit of C$28.5 billion next year, or 1.4% of Canada’s gross domestic product, and remain in the C$20 billion range for each year through 2022. The debt-to-GDP ratio is expected to stay slightly above 31% over the next four years.

.. the government is also benefiting from stabilizing oil prices, which is lifting fortunes in the resource-rich region of western Canada.

.. suggest Canada’s economy has moved into a higher gear, following two years of lackluster growth because of the swift fall in commodity prices.

.. The government projects growth of 1.9% this year and 2% in 2018, which is below the Bank of Canada consensus.

.. Three quarters of Canada’s exports—or the equivalent of 20% of Canadian output — go to the U.S.