Thursday’s report projects real gross domestic product will grow at an average rate of 1.2 per cent annually over 2025 and 2026.

The parliamentary budget officer is projecting the federal deficit will balloon this fiscal year as it downgraded its economic growth projections for the Canadian economy.

In a new report on Thursday, the PBO says the federal deficit will increase from $51.7 billion in 2024-25 to $68.5 billion in 2025-26, reflecting both lower economic growth and increased government spending.

The projections include measures announced up to and including Aug. 11, as well as tariff-related industry supports Prime Minister Mark Carney unveiled earlier this month.

Opinion: Carney’s plan to strengthen Canada’s economy must include port policing

However, they do not include an

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