BUDGET ANALYSIS Canada: Economic and Fiscal Update

The economic outlook has changed little since the last budget. Nonetheless, the update assumes nominal GDP will rise a little quicker due to a somewhat faster increase in prices and real GDP. It should be noted that the overhaul of the North American Free Trade Agreement (NAFTA) in the form of the United States– Mexico–Canada Agreement (USMCA) reduced uncertainties, which could result, in particular, in slightly higher growth in business investment.