Just to put things in minor perspective.
The assumptions the BoC based its projections on are,,, baseless.
Garth reported Cdns are $1T in debt. The latest figure is $1.3T with housing slower and retail sales not as weak as the US consumer, credit card debt could easily have doubled in the last year from $100B to $150B. As bad as that sounds other countries are in worse shape as the BoC notes.
As we are all well too well aware our economy is export based so our biggest customer has to get turned around before demand for our commodities even start to address the massive government revenue shortfall from reduced commodity royalties and taxes.
Somehow all this is going to turn around in 6 months,,, all based on deficit spending by Cdn tax payers... I should add the GDP is directly affected by government spending so estimates of GDP growth is based on the possible size of deficit stimulus spending and not any increased production by Cdn companies involved in global trade or most small self employed small business and others.
It is only a `technical` increase in GDP but in fact it`s long term debt.
Further, deficit stimulus spending in a mild recession is only moderately successful when the needed results are understood and relative to conditions.
A moderate recession holds substantial risk by implementing deficit stimulus.
In a serious recession the odds of success are about as good as a hail mary after the gun.
The more stimulus with an increasing downturn increases the depth of the resulting disaster exponentially.
This `plan` so far doesn`t even meet the criteria of a mild recession compared to a global mild, moderate or worse downturn.
Conclusion, the government including all the tentacles in a desperate attempt to use deficit stimulus spending to cover the real deficit. Why else would they build such a ridiculous argument for creating a disaster unless it was their jobs the`re worrying about?
No deficit, cut government spending and balance the books. That`s the only good budget for Canada