Key Takeaways
- The 2025 budget commits to C$280 billion of increased spending over five years, focused primarily on infrastructure, housing, and the military.
- The federal deficit is projected to be C$78.3 billion in fiscal 2025-26, declining to C$65.4 billion for 2026-27.
- Analysts say that if the stimulus sparks growth, that should lift the Canadian dollar, bond yields, and stock markets.
- The US economic environment and the US dollar’s strength would still impact Canadian assets.
Ottawa’s highly anticipated 2025 federal budget arrived with a mix of relief and realism for investors, with a smaller-than-expected deficit that may still take years to balance. However, analysts see little reason to boost their growth forecasts until the promised economic lift materializes.
On Nov. 4, the government released its stimulus plan, outlining a new approach to fiscal discipline and strategic…
