IMF Sees Canada’s Fiscal Position as Strongest in Group of Seven
The IMF says Canada is in the strongest fiscal position among G7 countries, giving Prime Minister Mark Carney room to increase spending on defense, infrastructure, and growth while still managing debt responsibly. Although the government faces criticism at home over rising deficits and abandoning a declining debt-to-GDP target, the IMF believes Canada remains focused on keeping debt sustainable and has flexibility to respond to economic shocks. The IMF also praised Canada’s investment-friendly tax changes and forecasts the economy will grow 1.5% in 2026, the second-fastest pace among advanced economies after the United States.
