Michel Saba, The Canadian press
OTTAWA – The Canadian economy is about to go through a period of turbulence, Prime Minister Justin Trudeau admitted Tuesday.
Asked when he came to the government if he expects the country to go through a recession, Trudeau simply replied that “we expect to be there for families in need, whatever the circumstances.”
However, he was more talkative in English in the face of remarks by Finance Minister Chrystia Freeland, who flirted solidly with the word recession the day before describing how “the economy will slow down”.
Mr. Trudeau then said that Canadians know that “headwinds”, headwinds or turbulence are coming.
“We have seen interest rates rise,” he added. We have seen the cost of living rise. For this we have taken concrete actions. The GST credit will be paid to Canadian families in the coming weeks, 11 million Canadian families who will receive nearly $ 500 in additional support this fall. “
In her speech in Gatineau on Monday, Ms Freeland said she wanted to give Canadians “the truth” about what lies ahead.
“Even if inflation decreases in the coming months, the situation will remain difficult,” he said. (…) Our economy will slow down as the central bank faces inflation. Many people will see their mortgage payments increase. Business will no longer be as good as it has been since deconfinement. And the unemployment rate will no longer be at an all-time low “.
Ms Freeland then said that the next few months will be “demanding”, that her government will help Canadians navigate “these troubled waters” and overcome “the recession that is coming, in Canada and around the world”.
Speaking in the lobby of the House of Commons, New Democratic Party leader Jagmeet Singh said Canada “needs a plan” to help those who lose their jobs.
“It means, for example, improving occupational insurance to ensure the system is available to all and having a plan to support families in this difficult time,” he said.
When asked a few minutes later in question period whether the government will “wait for people to suffer before taking action,” Trudeau replied by advertising his account to double his GST credit for six months, dental care for low-income families and assistance for low income income tenants.
Although a growing number of observers predict a possible recession next year, the Bank of Canada has not changed its stance on interest rate hikes and maintains its target of bringing inflation back to the 2.0% target, sustained in recent days. by its governor, Tiff Macklem.
Statistics Canada will release its latest inflation data for September this week. The Bank of Canada will announce its next interest rate decision next week and will publish an update to its economic forecast at the same time.
