Canada’s (AA+/Stable) recently published mid-year economic and fiscal update, the Fall Economic Statement (FES), presents a fiscal outlook that is largely budgetary neutral this fiscal year, but weaker over the medium term, says Fitch Ratings. The FES still envisages Canada’s debt/GDP ratio declining – after an additional consecutive year of rising in fiscal 2024/25 – but less rapidly as the government balances conflicting policy objectives. Unlike prior cycles, there is no major immediate impact from the FES on Canada’s federal budget outlook for fiscal 2023/24 (year ending March 2024). According to the FES, the ... (full story)