Mike Moffatt | Here’s how big the federal deficit might get

Recently released figures by Consensus Economics forecasted that Canadian real gross domestic product (GDP) will grow at a 1.1-per cent pace in 2015, down significantly from the 2.0 per cent projection in Budget 2015.

Assistant Professor Mike Moffatt wrote an op-ed for Canadian Business where he broke down the GDP surplus forecasts in Budget 2015 to help determine the significance of a federal deficit.

“We should be worried about the multi-billion dollar budgetary hole created by slower-than-expected economic growth,” said Moffatt. “However, more worrying for future federal budgets is the post-recession track record of economic forecasts.”