Canada lowers forecast for 2021/2022 budget deficit

Finance Canada said the projected budget deficit for the 2021/22 fiscal year will be C$144.5 billion ($112.4 billion), down 6.6% from the C$154.7 billion forecast in April. "Canada has largely recovered from the economic damage caused by COVID-19 and is preparing for strong growth in the coming months," Canada's Finance Minister Chrystia Freeland said in a prepared speech.

The financial update document issued by the Ministry of Finance forecast that the debt-to-GDP ratio in Canada will be 48.0% in 2021/22, compared to the expected 51.2% in April, and then decline to 44.0% in 2026/27.