Nearly 2-million Canadians are expected to remain out of work this year as the pandemic drags the economy down and the various federal aid programs send the deficit into orbit.
The Trudeau government’s economic, fiscal ”snapshot” lays out its belief that there will be a slow return to a new normal with unemployment high and economic growth low through to – at least – the end of next year.
”Forecasts are always uncertain. So with this snapshot we’re providing our best prediction of the economic situation in Canada to the end of the current fiscal year to March 31, 2021,” Finance Minister Bill Morneau explained.
“Trying to predict further would be potentially misleading.”
Morneau says if there’s a second wave during the flu season later this year, lockdowns would cause a deeper, longer-lasting negative impact on the economy.
The government also says a recovery cannot begin in earnest until an effective vaccine or treatment becomes widely available.