2014 Federal Budget Executive Summary

Economic Outlook

Despite global economic growth remaining weak in 2013, the Canadian economy continued to outperform its G-7 counterparts both in terms of job creation and the growth in real disposable income per capita. As part of Canada’s continued efforts to diversify its export markets and to reduce its dependence on the U.S., a trade agreement was reached with the European Union, making Canada one of a few developed countries to have preferential access to the world’s two largest markets, the EU and the United States.

Canada’s Economic Action Plan for 2014 takes further steps to foster job creation and promote innovation and trade, ensure safe and responsible resource development, invest in public infrastructure and transportation for Canadians, and support Canadian families and communities. The government forecasts a budgetary surplus of $6.4B for 2015-2016, which is in-line with their commitment to reduce the federal debt-to-GDP ratio to 25 per cent by 2021. Relative to the economic performance of Canada in 2013, the economic outlook for 2014 is encouraging, with expected GDP growth rising to 2.4% over the first half of the year.