Surge in debt leads to loss of AAA credit rating in a disturbing blow to Canada’s financial reputation.
As debt continues to surge, Canada has lost our AAA credit rating.
The rating has been downgraded by Fitch Ratings to AA+.
According to Fitch, Canada’s debt is projected to rise from 88.3% of GDP to 115.1% of GDP.
While many countries around the world are adding lots of debt, Canada’s growth before the crisis had already been very weak.
Various measures such as the carbon tax and excessive regulations have severely weakened Canada’s economy, with the energy sector struggling under the boot of government interference. Manufacturing has also been weak, with Canada clearly being seen as an increasingly challenging place to do business.
Additionally, the Liberal government massively increased our debt in good economic times, yet that huge surge of spending didn’t boost the economy.
In fact, when you look at Canada’s economic numbers even before the CCP Virus Crisis, it’s clear that Canada had no real growth at all, with GDP increases being almost entirely due to population increases, while Canadians are getting poorer on a per capita basis.
Now, with the loss of our AAA credit rating, Canada now faces even more severe challenges, with a rise in borrowing costs, an increasing burden of debt payments, and a badly damaged reputation.
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