The Canadian government has issued a forecast that its debt will grow from $1.2 trillion today to $1,470 trillion by 2033, the first year it will have debt-to-GDP ratio that high.
The Canadian National Debt Survey released Tuesday said the ratio will rise from 60 per cent of GDP today to 80 per cent by 2034.
The survey says Canada is headed for another major economic downturn before it can achieve a return to normal growth.
The new forecast comes after a new federal election is held in 2021.
The Conservatives and Liberals have promised to lower the debt to a budget surplus by the end of 2021, which would be a historic achievement for a country that was one of the fastest growing in the world before the 2008 global financial crisis.
The Liberals are also promising to raise the federal government’s share of the economy to 25 per cent from 16 per cent.
The Liberal Party’s latest platform promises to bring Canada into the 21st century.
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