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Federal Government is Underestimating Risks of Recession and Higher Interest Rates

January 25, 2023

David Dodge speaks with the Globe and Mail about how the federal government is underestimating the risks of a possible 2023 recession and prolonged high interest rates. David warns the government may have a hard time delivering on all their recent political commitments.

The new Bennett Jones-Business Council of Canada paper, Assessing the Potential Risks to the Sustainability of the Government of Canada’s Current Fiscal Plan, says the government’s most recent fiscal forecast now appears to be based on a “plausible but optimistic” set of assumptions about the economy and future interest rates.

“You’ve got to align what you’re promising with what you’re actually putting real resources behind,” David says.

David and Richard Dion collaborated on the paper with Robert Asselin, senior vice president, policy, of the Business Council of Canada.

Globe and Mail subscribers can read the full article here.

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