2013 Federal Budget Executive Summary

Economic Outlook

The Canadian economy outperformed its G-7 counterparts with bullish job creation and the highest real GDP growth, despite the delicate economic conditions in the Euro zone and the United States. Canada’s Economic Action Plan for 2013 aspires to further this growth by bolstering education and training programs, enhancing the conditions for the creation and growth of domestic businesses, investing in public infrastructure projects, encouraging research and innovation and expanding opportunities for Canadians to succeed and enjoy a high quality of life.

The vitality of the Canadian economy will be supported by the Government’s commitment to return to a balanced budget, resulting in a projected surplus of $800 million in 2015-2016. The Government aims to achieve this goal by restraining the growth of direct program spending without cutting transfers to individuals and by maintaining the current level of taxes. However, the Canadian economy is facing numerous challenges due to continued weak global economic conditions, which have led to decreased demand for Canadian exports and lower commodity prices. This results in a modest estimated real GDP growth of 1.6% for 2013.