Remarks by the Deputy Prime Minister on the Canadian economy

June 18, 2024 - Ottawa, Ontario

Good afternoon, and welcome to our last economic update while Parliament is still sitting.

I will start with an overview of the Canadian economy today.

Minister Mark Holland will then provide an update on our new Canadian Dental Care Plan.

Minister Jenna Sudds will discuss our new National School Food Program.

And finally, Minister Anita Anand will speak about our government’s work to crack down on junk fees and make life more affordable for Canadians.

Earlier this month, the Bank of Canada lowered interest rates—making Canada the first G7 country to do so.

Interest rates are coming down because inflation is falling. Inflation fell to 2.7 per cent in April, down from 2.9 per cent in March.

That’s four months in a row that inflation has been within the Bank of Canada’s target range. That’s really good news.

In fact, inflation has fallen to its lowest level in three years, and wage growth has now outpaced inflation for 15 months in a row.

Last week, the International Monetary Fund released its annual Article IV review of the Canadian economy, and in that statement, the IMF commended Canada’s strong fiscal credibility and economic resilience. Specifically, the IMF credited our government for adhering to the fiscal guideposts we introduced in the 2023 Fall Economic Statement, which complement our government’s fiscal anchor to reduce the debt-to-GDP ratio over the medium term.

We met all of those markers in the 2024 budget, and the IMF recognized that the Canadian economy appears to have achieved a soft landing, avoiding a recession and the heartbreaking surge in unemployment that many had thought was inevitable. 

In fact, today, almost 1.3 million more Canadians are working compared to before the pandemic.

The OECD expects the Canadian economy to see the second fastest rate of growth among the G7 this year and the fastest growth in 2025, tied only with the U.S.

After our budget was tabled in April, Moody’s and S&P, two of the leading credit ratings agencies, reaffirmed Canada’s triple-A credit rating with a stable outlook.

These are powerful economic proof points. They show that Canada’s economy is strong and resilient. They show that our economic plan is fiscally responsible. And that really matters, because it means that we can afford to make the investments and create the good jobs Canadians need.

It means we can afford to invest in our Dental Care Plan, under which 2 million Canadians have already been approved to get the dental care they need from a dentist or hygienist.

It also means we can afford to invest in a National School Food Program, which is going to help 400,000 more kids get the healthy food they need to learn and grow.

Our government is acting now—and acting with purpose. Because Canadians are counting on us.