The coronavirus pandemic sweeping the globe could send Canadian unemployment rates soaring to 15 per cent by the end of the year, a new forecast by the parliamentary budget watchdog suggests.
At the same time, the federal deficit could spike to $113 billion by the next fiscal year.
The current federal deficit sits at roughly $26.6 billion while the national unemployment rate in February was 5.6 per cent.
Parliamentary Budget Officer Yves Giroux published a forecast report on Friday looking at what the economic and fiscal impacts could be on Canada of the coronavirus pandemic.
In it, Giroux cautioned that the forecast is built around a number of assumptions including that current isolation and social distancing measures will stay in place until August.
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But he noted that the office will continue to update projections as the situation evolves.
“We stress that this scenario is not a forecast of the most likely outcome,” he wrote.
“It is an illustrative scenario of one possible outcome.”
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