Trudeau Aid Plan Becomes Key Lifeline for Canadian Economy

One big takeaway from Canadian economic data released this week has been the extent to which housing is driving the nation’s recovery from the pandemic. Another is how the economy remains heavily reliant on government help.

A look at the national economic account shows that transfers by Prime Minister Justin Trudeau’s government to households and companies remain elevated, even as they come off their peak pandemic levels. Direct spending by governments, too, continues to make a major contribution in an economy where business investment remains well below pre-crisis levels.