Canada projects C$62B deficit for 2026-27 amid supply disruptions

Poin penting

• Canada is projecting a national budget deficit of C$62 billion for the 2026-27 fiscal year, driven largely by ongoing supply disruptions.
• This significant deficit forecast could severely limit the country's fiscal flexibility moving forward.
• Consequently, the fiscal shortfall may negatively impact broader economic growth and weigh on upcoming monetary policy decisions by financial authorities.

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