US EditionProvincial deficits to narrow in coming years despite trade war: report
CANADA, JUL 29 – Economic pressures and demographic challenges are driving deficits in all provinces, but spending restraint and infrastructure projects are expected to narrow deficits by 2030, says Conference Board.
- On July 29, 2025, the Conference Board of Canada published a report forecasting that provincial budget shortfalls are expected to decrease over the next few years despite ongoing economic challenges.
- The report cites trade tensions, especially the Canada-US tariff dispute, a slowdown in economic activity, and demographic challenges including slowed population growth due to federal immigration caps as key causes.
- Provinces like Quebec face difficulties from weak demographics, increased health and education spending demands, and economic uncertainty, while British Columbia struggles with a steep deficit but may improve through natural gas royalties and infrastructure investment.
- Richard Forbes, principal economist, explained that a reduction in economic growth results in fewer new jobs, decreased consumer spending, lower incomes, and diminished corporate earnings. He also observed that provincial governments have been adopting more cautious approaches to their budget plans.
- The forecast indicates that provinces such as Alberta and Saskatchewan are anticipated to achieve budget surpluses prior to 2030, while overall efforts to limit government expenditures are expected to contribute to deficit reduction by the end of the decade amid ongoing economic uncertainties.
23 Articles
23 Articles
Provincial deficits will narrow in coming years despite trade war: report
Under pressure from the US trade war and a slowing economy, Canada's provinces are all expected to run fiscal deficits this year — but a Conference Board of Canada report predicts those deficits will narrow in the coming years.
Winnipeg Free Press
Provincial deficits to narrow in coming years despite trade war: report
Breaking News, Sports, Manitoba, Canada
OTTAWA—In the face of the trade war with the United States and the economic downturn, all Canadian provinces are expected to have budget deficits this year. However, a report by the Conference Board of Canada predicts that these deficits will be reduced in the years to come. The report released on Tuesday paints a picture of provinces struggling to balance their accounts. Shortly after their exit from a pandemic that caused deficits to explode, …
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