Canadian unemployment could hit 15 per cent amid coronavirus pandemic, deficit to $113B

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.

[ Sign up for our Health IQ newsletter for the latest coronavirus updates ]

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.”

Source: Read Full Article