JASROOP GOSAL
SURREY – The Surrey Board of Trade welcomes the measures in the 2024 Fall Economic Statement aimed at spurring innovation and investment. However, concerns remain about Canada’s economic competitiveness and the lack of measures to address the growing federal deficit, which risks long-term economic stability.
“Surrey businesses are feeling the pressure of an underperforming economy and a growing fiscal imbalance,” said Jasroop Gosal, Interim Spokesperson and Policy & Research Manager of the Surrey Board of Trade. “The deficit, if left unchecked, will have long-term consequences for business confidence, investment, and the strength of our local and national economies. We need bold, targeted strategies that ensure growth-driven spending is matched by a plan to address fiscal sustainability.”
The Economic and Fiscal Developments indicates that our deficit grew by $21.8 Billion dollars more than the budgeted 2024 $40 billion dollars resulting in a $61.9 billion dollar deficit.
“With global competition intensifying, we cannot afford to ignore the high deficit, which leaves less room for maneuvering when economic challenges arise.”
The Fall Economic Statement utilizes survey data from private-sector economists across Canada. This data is collected in September. The Statement indicates that the economists have not been surveyed since the US Presidential Election, which we believe would have had an impact on the assessments of Canada’s economy.
The budgetary balance upside scenario accounts for a stronger US economy, however, this will lead to the Trump Administration having a greater position of strength when negotiating tariffs and treaties. The downside scenario accounts for lower business and consumer confidence and investment due to geopolitical tensions. The Statement indicates that the balance of risks to growth are tilted to the downside, which results in a larger drag on growth.
The Government of Canada reiterated its commitment to its fiscal anchor to reduce the federal dept-to-GDP ratio over the medium term. Still, Canada is in a better place than other G7 countries. Canada’s debt burden is lower than any other G7 country.
There are two ways to grow an economy in the long term: increasing the size of the labour force or boosting productivity to enhance the value of what is produced. Canada has relied heavily on immigration to grow its workforce, but productivity remains a key weakness. The changes in immigration policy will further erode any economic growth we have seen thus far.
The 2024 Fall Economic Statement introduces many initiatives to help small businesses get ahead. The Surrey Board of Trade applauds the government for its proposed Red Tape Reduction Office to accelerate the cutting of red tape, establishing measures to track, assess, and communicate the results of regulatory action, and improve accountability, oversight, and transparency.
The Surrey Board of Trade also applauds that the government intends to explore a transition from cannabis excise duty stamps specific to each province and territory to a single, national stamp.
We will also find the specific, restrictive measures that each province and territory has in place that prevents trade within Canada. The measures related to reducing inter-provincial trade barriers is welcomed, especially since US tariffs may come into play as early as Q1 of 2025.
The Surrey Board of Trade is also looking forward to learning more about the Red Seal Trade Program for health care workers.
The 2024 Fall Economic Statement announces the government will host an Invest in Canada Summit in spring 2025. The Surrey Board of Trade looks forward to hearing more about this initiative.
The Surrey Board of Trade is pleased that the Government of Canada will limit access to Canada’s federal procurement market to Canadians and trading partners who provide access to Canada.
Read the full Fall Economic Statement here: https://budget.canada.ca/update-miseajour/2024/home-accueil-en.html
Jasroop Gosal is the Interim Spokesperson and Policy & Research Manager for the Surrey Board of Trade
