Forecast comes amid unprecedented government measures to respond to health & economic crisis and huge slowdown in economic activity.
The Parliamentary Budget Officer Yves Giroux is forecasting a potentially mammoth budget deficit, as the economy reels from the CCP Coronavirus Crisis.
According to the report, the deficit could hit $113 BILLION, and unemployment could reach 15%.
In the scenario forecast, GDP will decline by 2.5% in Q1 of 2020, and then by a stunning 25% in Q2. Canada’s GDP growth for the year would fall by 5.1%, the worst since 1962.
The scenario is based upon continued social distancing until August, and success in “flattening the curve” of the virus spread.
Additionally, the massive fall in oil prices has factored into these forecasts, with a serious drag on growth and employment in many parts of Canada, particularly Alberta.
Notably, the report indicates that the projected impact of this current crisis will be much larger than the 2008-2009 financial crisis.