Government of Canada releases 2024 Fall Economic Statement

From: Department of Finance Canada

News release

December 16, 2024 - Ottawa, Ontario - Department of Finance Canada

Today, the Government of Canada released the 2024 Fall Economic Statement.

The Fall Economic Statement includes updates on investments to expand Canada’s social safety net, build more homes, and reduce the costs of essentials like child care, dental care, and prescription medications including insulin and contraceptives.

Additionally, the Fall Economic Statement announces investments in wealth-generating research and development, and more support for Canada’s innovators and start-ups. Canada is a world leader in artificial intelligence and the government intends to use this edge to secure an economic competitive advantage to better serve Canadians. To create incentives for businesses to invest at home, the government intends to extend the Accelerated Investment Incentive for five years. This would deliver $17.4 billion in tax incentives, unlock more investment opportunities and create jobs and growth.

To keep Canadians safe, the 2024 Fall Economic Statement proposes to make a significant, $1.3 billion investment to secure our borders. The government intends to implement stricter bail and sentencing laws and take assault-style weapons off our streets. It also intends to invest in communities across Canada to reduce economic disparities, and protect the rights of women, religious groups, and Black Canadians.

The government continues to leverage Canada’s economic advantages to protect Canadian jobs, Canadian businesses, and our economy from threats to our national interest and economic security. 

Quick facts

  • The 2024 Fall Economic Statement (FES) maintains the government’s forward-looking fiscal anchor, with a debt-to-GDP ratio projected to decline in each year of the forecast horizon, from 41.9 per cent in 2024-25, to 38.6 per cent in 2029-30 and keeps the deficit under 1 per cent of GDP in 2026-27 and future years.

  • In 2024, inflation has been within the Bank of Canada’s 1 per cent to 3 per cent target range, and was at 2 per cent in October. This year, the Bank of Canada has cut interest rates five times, by 175 basis points, to bring the policy rate from 5 per cent to 3.25 per cent. 

  • Over the past 12 months, the monthly average number of jobs created has been over 27,000 jobs per month, for a cumulative 330,000 jobs during this period. This pace of job creation is an improvement from the solid 22,000 average monthly gain in 2019, when the unemployment rate was at a historically low level of 5.7 per cent and inflation ran close to 2 per cent.

  • The Canadian economy is now 7.3 per cent larger than it was before COVID first hit, and over 1.4 million more Canadians are employed today than before the pandemic.

  • Looking ahead, the effects of stronger labour force participation from the national $10-a-day child care program will continue to boost incomes of Canadian families and is expected to add 1.1 per cent to GDP over the long-run once fully implemented. The program is already having a significant impact on affordability saving some families up to $14,300 per child, per year. 

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Contacts

Media may contact:

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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