Prime Minister Mark Carney Says Canada’s Economy Is Expected to Grow and Deficit to Fall
Prime Minister Mark Carney’s budget update keeps to his path of diversifying away from the United States.
Prime Minister Mark Carney of Canada presented a budget update on Tuesday showing that his government’s deficit would be less than projected last fall and that the country’s economy would most likely grow over the coming year despite several key industries being buffeted by President Trump’s tariffs.
The spring economic update, a mini budget of sorts, came exactly one year after Mr. Carney returned the Liberal Party to power in his first political campaign and a few weeks after special elections and defections to the Liberals by members of other parties gave him a majority and the voting control of Parliament he had been denied in that election.
But if Mr. Carney intends to use his newfound political control to change direction, there was no indication. Instead, the update underscored his broad push to reduce Canada’s economic dependence on the United States by expanding trade with other countries and cutting government spending in some areas to expand military spending and large infrastructure projects like pipelines and nuclear power reactors.
“The world has been more uncertain than ever, but despite that, the Canadian economy has been resilient,” François-Philippe Champagne, the finance minister, told reporters on Tuesday. “We’re definitely entering a new world order.”
Mr. Carney, the former central banker of Canada and England, was an investment executive until he moved into politics last year. At that time, the Conservatives seemed certain to win the election to come. Justin Trudeau, the Liberal leader at the time, had become unpopular after more than nine years in office, and his government was seen as profligate by many voters.
