Economy to ‘Stagnate,’ Federal Deficit Expected to Balloon to $46.5B This Year: PBO

Economy to ‘Stagnate,’ Federal Deficit Expected to Balloon to $46.5B This Year: PBO
Parliamentary Budget Officer Yves Giroux prepares to appear before a committee in Ottawa, on June 13, 2022. The Canadian Press/Justin Tang
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The parliamentary budget officer says higher interest rates will lead the economy to stagnate in the second half of the year, with a new report suggesting the federal deficit will rise significantly this fiscal year.

The PBO released its economic and fiscal outlook Friday, providing updated projections for the economy and federal finances as high interest rates weigh on growth.