Foreword

Since 2015, our government's economic plan has been and remains to build a strong economy that works for everyone—with good jobs that people can count on.

Major investments in public transit, in EV battery factories, and in new energy projects are not just one-off public expenditures. They are investments—decades-long investments—in the economic growth which creates middle class jobs, raises incomes, and makes middle class communities more prosperous.

Affordable early learning and child care is an investment in our social infrastructure, and it is also transformative economic policy. It gives children the best possible start in life, while supporting record women's employment and helping to address the labour shortages which contributed to inflation.

Enhancements to Canada's social safety net, ranging from the Canada Child Benefit to the Canada Workers Benefit to the Canadian Pension Plan, are about driving down inequality, raising incomes, and ensuring by design, not by trickle-down, that everyone can truly share in our country's prosperity.

With investments in our economy, our communities, and a new generation of middle class careers, we have focused, relentlessly, on ensuring that government investments help to deliver real economic opportunities for Canadians.

This Fall Economic Statement provides an update on our economic plan—and builds upon it.

Inflation is coming down, wages are going up, and private sector economists now expect Canada to avoid the recession that many had predicted. Over a million more Canadians are employed today compared to before the pandemic.

In the first half of this year, Canada received the third-most foreign direct investment of any country in the world—and the highest per capita in the G7. The IMF projects Canada to likewise see the strongest economic growth in the G7 next year.

Our economic plan is working.

But the rapid global increase in interest rates is having an impact on both the global economy and our own—and Canadians are feeling the squeeze. That is why this Fall Economic Statement is narrowly focused on two key challenges.

The first key challenge is supporting the middle class at a time when some prices are still high and mortgage renewals are looming. That is why we are introducing new targeted measures to help stabilize prices, make life more affordable, and protect Canadians with mortgages.

And we are making a conscious decision to avoid pouring fuel on the fire of inflation—thus doing our part to ensure that interest rates can fall as soon as possible, which is the number one priority for millions of Canadians today.

The second challenge is both the largest and the most urgent. Building the homes a growing Canada requires demands a great national effort—and it is an effort that our federal government is leading. Building on the significant action we have already taken—including this fall alone—this Fall Economic Statement takes further concrete steps to get more homes built, faster, and to help make housing more affordable across the country. We approach this task with the purpose, drive, and intensity it deserves, and we will continue to take action to address this most pressing challenge for as long as it takes.

Our response to these challenges is built upon our responsible fiscal plan. Following the unwinding of emergency supports, Canada's rate of fiscal consolidation has been the fastest in the G7 since the depths of the pandemic, and we maintain both the lowest deficit and net debt-to-GDP ratio of any G7 country. With further reductions in public sector spending, this Fall Economic Statement takes further action to ensure Canada's finances remain sustainable—and that we can continue to responsibly invest in Canadians for years to come.

I am incredibly optimistic about what the years to come will mean for Canadians.

At the heart of the promise of Canada is the conviction that, no matter who you are—no matter what you look like or who you love or where you were born—every day represents a new opportunity.

That if you work hard, you can share in the remarkable possibilities of our remarkable country—with a good career that pays you well, and with a home you can afford.

Building a Canada that delivers on the promise of the greatest country in the world will be our work for these next two years—and beyond.

Canada is not and has never been broken.

We are the imperfect but remarkable creation of generations of Canadians who did their part to build a better country—in good times and in tough times, calloused hand by calloused hand.

Generations of Canadians who fought fear and cynicism with hope and hard work.

Generations of Canadians who fought, day after day, to keep Canada moving forward.

And generations of Canadians who believed—just as I do, today—that better is always possible.

The Honourable Chrystia Freeland, P.C., M.P.

Deputy Prime Minister and Minister of Finance