Canada’s economy is reeling in the wake of the crash in oil and commodity prices since june 2014. The government’s immediate concern is that the nation’s current account deficit is yawning/ Also, the fiscal deficit that was supposed to go away this year is now wide and widening. A newly elected government has just announced a budget raising the fiscal deficit to most 3% of GDP for the next three years at least, from less than 1% last year. Many expect it will grow even wider. Canada’s public sector debt is quite low. Private section debt is now so low, at 150% of national income: Saving are about 3.6% of GDP and they are falling, and they will decline in the years ahead. The questions are in the attachment.
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