{"id":42532,"date":"2024-01-08T19:59:28","date_gmt":"2024-01-08T19:59:28","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/01\/08\/canada-risks-bond-markets-wrath-if-fiscal-picture-deterioates\/"},"modified":"2024-01-08T19:59:28","modified_gmt":"2024-01-08T19:59:28","slug":"canada-risks-bond-markets-wrath-if-fiscal-picture-deterioates","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/01\/08\/canada-risks-bond-markets-wrath-if-fiscal-picture-deterioates\/","title":{"rendered":"Canada risks bond market&#8217;s wrath if fiscal picture deterioates"},"content":{"rendered":"<div style=\"text-align:center\"><\/div><p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header article-header--story\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\" data-aqa=\"nav-breadcrumb\">\n<p>Breadcrumb Trail Links<\/p>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\">Economy<\/li>\n<\/ol>\n<\/nav>\n<div class=\"article-header__detail\">\n<div class=\"article-header__detail__texts\">\n<p class=\"article-subtitle\">David Jones: Ottawa must hold firm to fiscal projections laid out in fall economic statement<\/p>\n<div class=\"article-meta\">\n<p><span class=\"published-date__since\">Published Jan 08, 2024<\/span> \u00a0\u2022\u00a0 <span class=\"updated-date__since\">Last updated 2\u00a0hours ago<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">3 minute read<\/span><\/p>\n<\/p><\/div>\n<\/div>\n<figure class=\"featured-image\" data-aqa=\"featured-image\"><picture class=\"featured-image__ratio\"><\/source><\/source><\/source><\/source><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">Minister of Finance Chrystia Freeland arrives at a news conference before the tabling of the fall economic statement in Ottawa, Tuesday, Nov. 21, 2023. <\/span> <span class=\"credit\">Photo by THE CANADIAN PRESS\/JUSTIN TANG<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>A wise man once said: \u201cBeauty is in the eye of the bondholder.\u201d<\/p>\n<p data-async=\"\">That\u2019s valuable wisdom as the federal government gears up for this year\u2019s budget. When judging the sustainability of Canada\u2019s fiscal plans, the perspective of the financial markets matters the most, because they finance deficit spending and determine government borrowing costs.<\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p data-async=\"\">In the 2023 Fall Economic Statement, released in November, the federal government repeated a recent habit of further postponing the return to fiscal balance. When compared with Budget 2023, the deficit trajectory is now projected to fall more slowly in future years.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_2\">\n<section aria-describedby=\"advertisment633400645843802356185143000956928\" class=\"ad\">\n<p>Advertisement 2<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-2\">\n<div class=\"ad__inner__container\" data-ad=\"[[6,6],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"6x6\" data-ad-loc=\"2\" data-ad-mobile=\"[[6,6],[320,50],[300,50],[300,250],[300,600]]\" data-aqa=\"advertisement\" id=\"ad-2\" style=\"--desktopHeight:250px;--mobileHeight:600px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<div class=\"article-block article-block-bg article-content__sign-in-group hidden\" data-aqa=\"identity-sign-in\" data-async=\"\" id=\"article-block\">\n<section class=\"row\">\n<header class=\"identity-intro col-xs-12 col-md-6 flex-justify-center\">\n<div class=\"col-xs-12 col-sm-10 col-md-10\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 75w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 100w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 150w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 240w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 320w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 500w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 640w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 800w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 1024w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 1280w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg 1600w\" alt=\"Financial Post\" class=\"market-logo\" height=\"37\" fifu-data-src=\"https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/identity\/logo-identity-fp.svg\" width=\"280\"\/><\/p>\n<div class=\"intro-body__premium hidden\">\n<p>THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\n<p class=\"identity-intro__description\">Subscribe now to read the latest news in your city and across Canada.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Exclusive articles from Barbara Shecter, Joe O&#8217;Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\n<li>Daily content from Financial Times, the world&#8217;s leading global business publication.<\/li>\n<li>Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\n<li>National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\n<li>Daily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n<div class=\"intro-body__register hidden\">\n<p>SUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\n<p class=\"identity-intro__description\">Subscribe now to read the latest news in your city and across Canada.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Exclusive articles from Barbara Shecter, Joe O&#8217;Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\n<li>Daily content from Financial Times, the world&#8217;s leading global business publication.<\/li>\n<li>Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\n<li>National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\n<li>Daily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n<div class=\"intro-body__anonymous\">\n<p>REGISTER TO UNLOCK MORE ARTICLES<\/p>\n<p class=\"identity-intro__description\">Create an account or sign in to continue with your reading experience.<\/p>\n<ul class=\"list-unstyled list-checkmark\">\n<li>Access articles from across Canada with one account.<\/li>\n<li>Share your thoughts and join the conversation in the comments.<\/li>\n<li>Enjoy additional articles per month.<\/li>\n<li>Get email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p data-async=\"\">The government might feel this is manageable or politically appealing. Recent polls suggest that Canadians are more concerned with affordability, housing and healthcare than fiscal sustainability.<\/p>\n<p>But further postponing deficit reduction means that Canada\u2019s fiscal forecasts will be viewed less credibly by the markets and rating agencies. If Canada wants to maintain its \u2018triple-A\u2019 rating, financial markets need to believe the government\u2019s fiscal plans.<\/p>\n<p>There is still just enough time to sneak in a fiscal New Year\u2019s resolution. The government should seek to re-enforce its credibility with financial markets by ensuring that fiscal plans in Budget 2024 hold firm to the trajectories set out in the fall statement.<\/p>\n<h2>The 2023 Fall Economic Statement<\/h2>\n<p data-async=\"\">There were several positives in the statement. The federal government\u2019s fiscal forecast for 2023\/24 remains in line with the forecast at Budget 2023 (a deficit of $40 billion. Net debt remains favourable compared to other G7 countries and Canada has a \u2018triple-A\u2019 rating from two of the main agencies.<\/p>\n<p data-async=\"\">However, not all is rosy. Current federal government public interest charges are roughly double pre-pandemic levels (as a percentage of GDP), yet the fall statement added $20 billion in spending. From 2024\/25 onwards, it forecasts a fiscal deterioration relative to previous projections \u2014 including higher deficits, rising debt and higher debt-servicing costs. As per Budget 2023, no time frame is given for achieving a balanced budget.<\/p>\n<\/section>\n<div class=\"js-widget-content article-content__widget-group article-content__widget-group--content-slot21 article-content__widget-group--newsletter-slot\">\n<section class=\"newsletter-widget__new-story-page fp-headlinenews background--primary-light-gradient\" aria-labelledby=\"FinancialPostTopStories760974223325050397436678829506560\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-aqa=\"widget-newsletter\" data-newsletter=\"single\" data-newsletter-component=\"\" data-target-list=\"FP_HeadlineNews\" data-widget=\"newsletter\">\n<div class=\"newsletter-new-story-page-template\">\n<div class=\"newsletter-widget__header__new-story-page\">\n<div class=\"newsletter-widget__banner__new-story-page\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 75w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 100w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 150w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 240w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 320w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 500w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 640w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 800w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 1024w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 1280w, https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg 1600w\" alt=\"Top Stories\" loading=\"lazy\" fifu-data-src=\"https:\/\/dcs-static.gprod.postmedia.digital\/15.1.1\/websites\/images\/newsletters\/icon-fp-topStories.svg\"\/><\/div>\n<div>\n<p>Top Stories<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">Get the latest headlines, breaking news and columns.<\/p>\n<\/div>\n<\/div>\n<div class=\"newsletter-widget__body__new-story-page\">\n<div class=\"js-replace-main__new-story-page\">\n<p class=\"newsletter-widget__disclaimer__new-story-page text-size--tiny\">By signing up you consent to receive the above newsletter from Postmedia Network Inc.<\/p>\n<\/div>\n<div class=\"js-submit-success\" hidden=\"\" id=\"submitSuccessFP_HeadlineNews\">\n<p>Thanks for signing up!<\/p>\n<p class=\"newsletter-widget__text__new-story-page\">A welcome email is on its way. If you don&#8217;t see it, please check your junk folder.<\/p>\n<p class=\"newsletter-widget__text__new-story-page newsletter__feedback--last\">The next issue of Top Stories will soon be in your inbox.<\/p>\n<\/div>\n<p class=\"newsletter-widget__text__new-story-page js-submit-error\" style=\"margin-top: 8px\" hidden=\"\" id=\"submitErrorFP_HeadlineNews\">We encountered an issue signing you up. Please try again<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_3\">\n<section aria-describedby=\"advertisment7594464704169529382028018261688320\" class=\"ad\">\n<p>Advertisement 3<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__inner__container\" data-ad=\"[[7,7],[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-interscroller=\"7x7\" data-ad-loc=\"3\" data-ad-mobile=\"[[7,7],[300,250],[320,50],[300,50]]\" data-aqa=\"advertisement\" id=\"ad-3\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<p>Admittedly, the federal government faced an exceptional challenge to support the economy and Canadian households through the post-pandemic period. But much recent spending growth is not pandemic-related. Canada needs the markets and rating agencies onside, so now is the time to reset financial rigour.<\/p>\n<h2>The market perspective matters<\/h2>\n<p>Some expert debate on Canada\u2019s fiscal position is beneficial to understand its true strength and sustainability, but the true arbiters are financial markets, which effectively set the price of Canada\u2019s debt and therefore determine the cost of deficit spending.<\/p>\n<p data-async=\"\">A recent example \u2014 albeit an extreme one \u2014 is the United Kingdom. Under Liz Truss\u2019 government, the U.K. issued a fiscal plan with unfunded tax cuts that drastically misread the financial markets, causing government bond yields to spike.<\/p>\n<p data-async=\"\">Canada\u2019s current fiscal plans are much less radical. However, there are some signs of nerves. A recent assessment by Fitch, one of the Big Three rating agencies, was titled: \u201cCanada\u2019s Medium-Term Fiscal Challenges to Increase.\u201d<\/p>\n<p data-async=\"\">If a rating downgrade (and higher Canadian risk premium) were to occur, it would have a material adverse fiscal impact, given that federal public interest charges are currently already elevated.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group ad_counter_4\">\n<section aria-describedby=\"advertisment8188033564673906730145315310010368\" class=\"ad\">\n<p>Advertisement 4<\/p>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-4\">\n<div class=\"ad__inner__container\" data-ad=\"[[1200,250],[1200,90],[970,90],[970,250],[728,90],[300,250]]\" data-ad-loc=\"4\" data-ad-mobile=\"[[320,50],[300,50],[300,250]]\" data-aqa=\"advertisement\" id=\"ad-4\" style=\"--desktopHeight:250px;--mobileHeight:250px\">\n<div aria-hidden=\"true\" class=\"ad__placeholder\">\n<p>This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<h2>Navigating challenges in 2024<\/h2>\n<p data-async=\"\">There may be economic downsides in 2024 that the federal government cannot fully control, as indicated through the fiscal ranges in the fall statement\u2019s projections.<\/p>\n<p>But slow economic growth in 2024 does not mean that fiscal projections go out of the window.<\/p>\n<p data-async=\"\">The statement\u2019s projections already bake in relatively low economic growth for 2024 (0.4 per cent real GDP growth). Moreover, the government has a responsibility to manage potential future cost pressures or revenue shortfalls, and re-prioritize accordingly.<\/p>\n<section aria-labelledby=\"moreTopicLabel2330844090359945671783969091223552\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\">\n<p>Related Stories<\/p>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li class=\"more-topic__item\" data-carousel-item=\"\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/01\/no0105boc.jpg?h=96&strip=all&quality=5&sig=7Jg55y9592PKD-_sz99Pug&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/01\/no0105boc.jpg?h=96&strip=all&quality=5&sig=7Jg55y9592PKD-_sz99Pug&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/01\/no0105boc.jpg?h=96&strip=all&quality=5&sig=7Jg55y9592PKD-_sz99Pug&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/01\/no0105boc.jpg?h=96&strip=all&quality=5&sig=7Jg55y9592PKD-_sz99Pug&ssl=1&w=240&resize=240&ssl=1 240w, 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fifu-data-src=\"https:\/\/i3.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/01\/no0105boc.jpg?h=96&strip=all&quality=5&sig=7Jg55y9592PKD-_sz99Pug&ssl=1\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/01\/no0105boc.jpg?h=96&strip=all&quality=80&sig=Dw6MqOKIOySw7N6RPp1doA, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/01\/no0105boc.jpg?h=192&strip=all&quality=80&sig=xm4BIu5zwOC2tDmdfMAvCQ 2x,\n                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/01\/no0105boc.jpg?h=288&strip=all&quality=80&sig=Zx5YtGXMphCHRfi0F-1CdA 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Interest rate cuts, return to growth on economic horizon, Deloitte says<\/span><\/p>\n<\/li>\n<li class=\"more-topic__item\" data-carousel-item=\"\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"The global economy has shown its mettle having withstood on onslaught of challenging events since 2020. \" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=80&sig=DmvgMQPOWrlHGAgLBK-1ZA\" fifu-data-src=\"https:\/\/i1.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=5&sig=ehKanpEl42an3NamvFQQ6g&ssl=1\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=96&strip=all&quality=80&sig=DmvgMQPOWrlHGAgLBK-1ZA, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=192&strip=all&quality=80&sig=LneItUhcsz9botOtOJ7yLA 2x,\n                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/global-economy-gs0102.png?h=288&strip=all&quality=80&sig=tdzzvqHAFZUJuAiSqxYx1w 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Reasons to be cheerful about the global economy<\/span><\/p>\n<\/li>\n<li class=\"more-topic__item\" data-carousel-item=\"\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"1969, 1979, 1989, 2000 and 2007: all were soft-landing years that were followed by hard-landing recessions that precious few investors were braced for. \" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=80&sig=h_87xylAXLxguJBsyzn_6A\" fifu-data-src=\"https:\/\/i2.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=5&sig=shxd0RmT1kBjUycuQLh6DQ&ssl=1\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=96&strip=all&quality=80&sig=h_87xylAXLxguJBsyzn_6A, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=192&strip=all&quality=80&sig=AW_HcDPSpewZ73ChYnXB0Q 2x,\n                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/12\/recession-1228-ph.jpg?h=288&strip=all&quality=80&sig=hreYf4zA47zrGiG3bCmdXQ 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Rosenberg: Why so-called soft landing is the calm before the storm<\/span><\/p>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p>The year ahead likely holds many challenges for the federal government. When it comes to Budget 2024, it should hold the line on its current fiscal trajectories. <em\/><strong><em><br aria-hidden=\"true\"\/><\/em><\/strong><\/p>\n<p><i>David Jones is a policy analyst and economist. He is a fellow at the Canadian Centre for Health Economics and is studying public policy at the Munk School of Global Affairs and Public Policy, University of Toronto.<\/i><\/p>\n<\/section>\n<section class=\"article-content__content-group article-content__content-group--story\">\n<p>Article content<\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt-val=\"{\" control_fields=\"\" data-evt-typ=\"page_scroll\">\n<p>Share this article in your social network<\/p>\n<\/section>\n<\/div>\n\n<br \/>Canada risks bond market&#8217;s wrath if fiscal picture deterioates<\/a><br \/>\n<br \/>2024-01-08 19:59:28<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links Economy David Jones: Ottawa must hold firm to fiscal projections laid out in fall economic statement Published Jan 08, 2024 \u00a0\u2022\u00a0 Last updated 2\u00a0hours ago \u00a0\u2022\u00a0 3&#8230;<\/p>\n","protected":false},"author":2,"featured_media":42533,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/11\/7357_x333_201c_9.jpeg?quality=90&strip=all&w=288&h=216&sig=br_ig5C6i58BMU9__7xidA","fifu_image_alt":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-42532","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/42532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=42532"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/42532\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/42533"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=42532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=42532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=42532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}