Winnipeg Free Press - PRINT EDITION

Flaherty to issue fall economic update

  • Print

OTTAWA, Ont. -- Finance Minister Jim Flaherty is issuing the fall economic update today, a mid-term report card many expect will show a modest deterioration in the government's finances.

A senior government official said Canadians should not expect any big surprises in the update, such as new tax or spending measures.

Last month, Flaherty revealed government revenues had been lower than expected due to an average five per cent drop in the global price of resource commodities Canada exports to the world.

In terms of growth, Flaherty is using a new, lower economic consensus forecast for real gross domestic product growth and also inflation-excluded nominal GDP, which bears more directly on tax revenues.

The new nominal growth estimate is for a 3.4 per cent increase this year, down from the 4.6 per cent advance forecast in the budget, and for a 4.0 per cent gain in 2013, down from the previously expected 4.4. Subsequent years were adjusted moderately upwards.

Using the new estimates, the TD Bank calculates revenues would be about $1.8 billion lower than projected this fiscal year, which ends March 31.

That may lead to a modest short-term hit on Ottawa's bottom line.

Given what the minister has described as an uncertain and risky global outlook, Flaherty may also build in a bigger margin for risk on his deficit projections, which could delay -- on paper at least -- the government's timeline for eliminating the deficit.

In the budget, Flaherty had pencilled a $21.1-billion shortfall this fiscal year, followed by deficits of $10.2 billion and $1.3 billion in the subsequent two years. The 2015-16 fiscal year would see a surplus for the first time in almost a decade.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition November 13, 2012 A8

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Winnipeg Jets Bogosian-Little-Ladd

View more like this

Photo Store Gallery

  • A red squirrel peaks out of the shade in a tree in East Fort Garry, Sunday, September 9, 2012. (TREVOR HAGAN/WINNIPEG FREE PRESS)
  • Jia Ping Lu practices tai chi in Assiniboine Park at the duck pond Thursday morning under the eye of a Canada goose  - See Bryksa 30 Day goose challenge Day 13- May 17, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Should the Canadian Museum for Human Rights use the word 'genocide' in exhibits on Indian residential schools?

View Results

View Related Story

Ads by Google