Canada

This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile Institutional stability and the wealth and diversity of the Canadian economy support policy predictability through the upcoming federal election and temporary slowdown in GDP per capita growth. The credibility of the Bank of Canada (BoC), moderate government debt burden, and a solid external position will support policy flexibility. --A federal system of government that delivers coordinated policies, social cohesion, and a resilient economy will continue to underpin the rating. --We expect inflation to ease, enabling the BoC to initiate cuts in the policy rate while its credibility underpins the rising importance of the Canadian dollar in global transactions and reserves. --High immigration should

...Our '###' rating on Canada reflects its strong institutions; credible monetary policy; moderate net government debt; sound net external position; currency's growing importance and status as actively traded; and wealthy, export-oriented economy, with GDP per capita of about US$55,400. We expect that Canada's well-diversified economy will remain resilient through the end of our forecast horizon in 2027 and expect that economic growth will accelerate in the next two years. We expect low deficits will continue to underpin Canada's moderate net general government debt burden that remains fairly stable over the forecast horizon. Long-term spending pressure, including commitments on housing, health care, and defense, will add to spending in the fiscal accounts. But overall prudent fiscal management aims to accommodate these pressures, keeping general government fiscal deficits below 2% of GDP. Political stability and policy predictability reflect Canada's strong institutions and stable parliamentary...

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