December 5, 2025 – Ottawa, Ontario – Department of Finance Canada 

Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, welcomed the International Monetary Fund (IMF)’s Concluding Statement of the 2025 Article IV Mission. Today’s statement highlights Canada’s economic resilience in the face of uncertainty caused by U.S. tariffs, and strongly endorses Budget 2025’s policies to ignite competition, productivity, and investment.

Specifically, the Statement notes that Canada’s economy has “held up better than expected” and that its “financial system remains resilient.” The IMF also asserts that “inflation has been contained, creating space for monetary easing.” In addition to these positive confirmations, the IMF also recognizes Canada’s fiscal space given its low debt burden and contained deficits.

The IMF sees Budget 2025’s policy actions as “reinforcing Canada’s productivity agenda.” These actions include decisive measures to unleash investment and innovation, such as the Scientific Research and Experimental Development program, advancements in Major Projects initiatives, and the Productivity Super-Deduction, which alongside the Accelerated Investment Incentive will “cut the marginal effective tax rates on new capital by over two percentage points, reinforcing Canada as the most tax-competitive country for new business investment in the G7.” They also include vital financial sector competition supports like the completion of the Consumer-Driven Banking Framework. Moreover, the IMF welcomes the government’s new Capital Budgeting Framework and describes the Comprehensive Expenditure Review as an “important step” in delivering higher, growth-focused investment. It maintains that the priority now for Canada is to manage near-term pressures and advance such initiatives, while meeting fiscal anchors.

Additionally, federal initiatives designed to boost housing supply – including Build Canada Homes, the Housing Accelerator Fund, expanded Canada Mortgage and Housing Corporation financing, and the Canada Housing Infrastructure Fund – are described as “addressing long-standing bottlenecks.”

Looking ahead, while the IMF acknowledges that the near-term global outlook remains complex, it states firmly that “Canada’s strong fundamentals and reliable access to external financing provide important buffers,” and the IMF’s latest World Economic Outlook projects that Canada will have the second strongest economic growth in the G7 in 2026.