Toronto (Canada), Nov 3 (EFE). – The Canadian government on Thursday said it expects budget deficits through 2027 and warned that the risk of Canada slipping into recession in 2023 has increased, which will worsen state accounts in the near term.

The announcements are included in the presentation of the latest data and economic forecasts for the country made this Thursday by Canada’s Finance Minister and Deputy Prime Minister Chrystia Freeland.

Freeland warned that Prime Minister Justin Trudeau’s government is preparing for deteriorating economic conditions, both domestically and globally.

The Treasury Secretary pointed out that the increase in interest rates passed by the Bank of Canada to mitigate the sharp rise in inflation is slowing the Canadian economy.

The Canadian government’s most optimistic scenario foresees moderate economic growth in 2023 that will reduce the deficit to C$36,400 million (US$26,486 million) for this fiscal year.

But should Canada fall into a recession in 2023, as the Bank of Canada has already predicted, the shortfall would be 49.100 million Canadian dollars (35.727 million US dollars).

The Canadian government also today announced measures to encourage private sector investment, as well as introducing a clean energy tax credit of up to 30% of investment costs in solar, wind or small nuclear reactor projects.

Canada will also levy a 2% tax on corporate share repurchases to encourage the reinvestment of profits back into the company itself and its employees.

(c) EFE Agency