US EditionDefence spending will lift Canada’s economy, but not out of a recession: report
CANADA, JUL 17 – Canada’s defence spending will boost GDP by 0.1% annually but requires tripling the budget to over $150 billion, hindered by procurement delays and economic risks, Oxford Economics said.
- Canada agreed to ramp defence spending, aiming to reach five per cent of GDP by 2035, with plans to triple the current defence budget to over $150 billion annually.
- Decades of chronic underfunding and bureaucratic gridlock have hampered Canada’s defence procurement system, delaying projects like the light utility vehicles and increasing costs, with the first vessel now pushed into the 2030s.
- Published Wednesday, Oxford Economics projected that real gross domestic product will rise by a tenth of a percentage point this year and next, according to the report.
- Financing a military expansion, Oxford Economics assumes that the accelerated defence spending will be financed by a larger deficit from the federal government, leading to political backlash.
- Ostensibly, Canada's commitment to reach 2035 and mid-point review reflects political theatre tailored for Donald Trump, implying it serves Washington's interests more than strategic necessity.
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40 Articles
Labrador to see development as Canada expands northern military defence
Atlantic Canadian companies from across Atlantic Canada involved in defence, came together at the annual Maritime and Arctic Security and safety conference in St. John's on July 17. As stakeholders explored threats to Canadian sovereignty, many looked to Labrador as a hub of defence.
Defence Spending Will Lift Canada’s Economy, but Not out of a Recession: Report
Ottawa’s ramped up defence-spending plans will give the economy a lift, but not enough to save it from a recession, a newly released report forecasts. The updated analysis from Oxford Economics published Wednesday projects that Canada’s defence spending commitments will raise the country’s real gross domestic product by a tenth of a percentage point this year and next. That would bring growth up to 0.9 per cent annually this year and 0.4 per cen…
According to the Government of Canada's will, the defence security sector will be at the heart of multiple industrial initiatives over the next ten years when defence spending will explode to account for 5% of Canada's GDP, compared to 2% now. High-level companies and different sectors of activity will benefit from this new, more security-oriented environment.
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