Canada’sTripleDeficitSignalsDeepeningStructuralWeaknessandEconomicGrowthRisksAhead
At Omnigence Asset Management, we believe Canada is facing a critical economic challenge marked by what we identify as a "triple deficit"—a combination of significant shortfalls in the fiscal, current, and financial accounts. In 2023 alone, the country posted a $60 billion fiscal deficit, an $18 billion current account deficit, and a $20 billion financial account deficit. These deficits reflect a broader structural issue: as a nation, we are consistently consuming more than we produce and relying heavily on borrowing to sustain that consumption. This pattern is unsustainable and essentially brings forward growth that must eventually be repaid, leaving us vulnerable to future economic stagnation. Despite clear warning signs, we see no meaningful efforts being made to address or correct these imbalances. Without a shift in policy or behavior, Canada risks being starved of the economic “oxygen” necessary for long-term growth. Our analysis is informed by public data, industry research, and our internal assessments, and while we stand behind our conclusions, we encourage investors and stakeholders to consider these insights in the broader context of responsible due diligence.View Full Report