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Canada's Spending Plans Will be Threatened by Higher Interest Rates and Looming Recession

January 25, 2023

The Toronto Star reports on why the federal government’s budget plan to grow the economy and get the public books in order is “unlikely” to work, given its evolving ambitious political promises, higher global interest rates and the “high likelihood of a more severe recession in 2023,” according to the new paper, Assessing the Potential Risks to the Sustainability of the Government of Canada's Current Fiscal Plan.

The analysis, written by David Dodge and Richard Dion—in collaboration with Robert Asselin of the Business Council of Canada—comes as the federal cabinet meets to strategize about the coming months in Parliament.

Toronto Star subscribers can read the full article here.

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