Finance Minister Bill Morneau’s fiscal snapshot earlier this month revealed that no country put more foam on the runway to absorb the economic crash caused by the COVID-19 lockdowns than Canada.
As of July 3, discretionary rescue spending, tax deferrals and emergency lending were worth about 45 per cent of gross domestic product, roughly the same as Germany, according to Finance Department estimates. Japan was in the picture, but not especially close. The average of the Group of Seven legacy powers was about 35 per cent of GDP.
It will be interesting to see which economy emerges from the coronavirus crisis stronger, because even though the Justin Trudeau and Angela Merkel governments have spent freely, decision-makers in Ottawa and Berlin have allocated their largesses differently.
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