The finance minister of Canada is tasked with the responsibility of providing an overview of the fiscal and economic state of the country. With COVID-19 having caused major hurdles for immigration throughout the year, this update will be telling as to the impact of the pandemic on the country.
Chrystia Freeland, the current finance minister of Canada released the update on November 30. Towards the beginning of 2020, the finance department had predicted that Canada would face a deficit of over $340 billion to keep the economy going during the pandemic. The update increased that figure to more than $381 billion.
The Fall Economic Statement notes that the pandemic has cut down on the number of arrivals to Canada for both permanent and temporary residents. The population growth of the country could drop to 1% in light of this situation, which is lesser than the last two years. The labor force is suffering as a result of which economic growth has been largely stagnant.
Sense of urgency
While the pandemic caused a drop in economic activity and employment rates almost immediately, Canada managed to restore some semblance of normalcy during the late summer months. Sadly, the number of coronavirus cases has again started increasing at an alarming rate as a result of which the country has had to enforce new lockdowns in certain regions.
Canada has gone out of its way to ensure that the economy and jobs remain safe during the pandemic, but these measures might not be sustainable long-term. For example, the Canada Emergency Response Benefit was especially introduced to provide financial assistance to people whose jobs were affected by coronavirus.
Canada’s post-pandemic immigration plans will look to make up for this year’s losses.