Economics
Canada GDP Collapse Reveals How Trudeau’s Debt Binge Went Awry
- Economy shrank most in post-war era as people hoarded money
- Government’s fiscal capacity has ‘deteriorated spectacularly’
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Justin Trudeau was more committed to borrowing his way out of the Covid-19 crisis last year than almost any other leader in the developed world. That cushioned the blow of the pandemic, but raises some hard questions about what Canada got for all that spending.
The economy shrank 5.4% last year, Statistics Canada said Tuesday, the sharpest annual decline in the post-World War II era and the third straight year in which it underperformed the U.S. economy. That’s despite Canadians receiving C$20 ($16.55) in government transfers for every dollar of income lost, according to government data.