Carney’s Budget Delay Adds to Economic Uncertainty, Analysts Say
Prime Minister Mark Carney’s decision to delay Canada’s budget until later this year is increasing economic uncertainty, though most economists in a Bloomberg survey say it won’t trigger concern among investors. Carney cited a shortened parliamentary session and the “uncertainty caused by Donald Trump’s chaotic trade war” as reasons for the postponement. The opposition Conservatives demanded a budget this month, warning that the delay risks worsening Canada’s fiscal outlook amid projections of a C$62.3 billion deficit and a looming technical recession, Bloomberg reported. Still, 15 of 17 economists surveyed said the delay doesn’t significantly raise investor risk, with one noting Canada retains an AAA rating despite concerns “structural deficits may add pressure” to its credit profile.