Nearly two-million Canadians will still be unemployed by the end of the year and the deficit will soar to a historic $343.2-billion.
That’s just part of the bleak outlook projected by the Trudeau Liberals in their latest fiscal “snapshot” of a country reeling from the global pandemic and its many effects.
As the COVID-19 crisis continues to drag down the domestic economy, Wednesday’s report backs up the federal government’s belief that a return to any ‘new normal’ won’t come quickly.
Even though the Liberals believe the worst economic harm has already hit, the document suggests that any recovery can’t truly begin until there is a widely available vaccine or treatment for COVID-19.
Economic growth is expected to stay low until at least the end of next year.
If that wasn’t bad enough, the Finance Department has laid out two possible, alternate scenarios where things could actually get worse.
One scenario assumes that widespread shutdowns and aggressive measures to curb the spread of COVID-19 continue for a prolonged period of time or aren’t fully rolled back.
In that case, the department believes a return to normal for families and businesses would be even slower than hoped for, leading to a sharper decline in economic output.
The other scenario assumes the country is hit with a second wave of the coronavirus during the normal flu season, leading to lockdowns and closures which would create a “deeper and longer-lasting negative impact on the economy.”