Ottawa should be able to maintain medium-term debt sustainability and achieve its goal of lowering its debt load over the next few years, according to a report by the Parliamentary Budget Officer (PBO).
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According to the report, there is thus a 65% probability that this ratio will be lower in 2026-2027 than its value of 63.7% observed in 2021-2022. The level of the debt could therefore have a certain stability despite the economic shocks to be expected.
The Trudeau government should also be able to reduce its debt and achieve its deficit target of 1% of GDP.
“However, our results also suggest that the gross debt-to-GDP ratio is unlikely to return to its pre-pandemic 2019-20 level by the end of the medium-term planning horizon, in 2026-2027. “, all the same specified Mr. Giroux.
Remember that according to the last budget, the federal debt will represent 45% of GDP for the current fiscal year.