Institution: The ratio of Canadian debt to GDP is expected to show a rise trend.

Jin10 data reported on October 22nd that Randall Bartlett, an analyst at the Canadian financial company Desjardins, stated that the upcoming Canadian budget plan is likely to show a rising trajectory for the federal government debt-to-GDP ratio over the next decade. In the budget outlook, Bartlett predicts that the annual budget deficit for the fiscal year 2025-26 will reach approximately 74 billion Canadian dollars, which is over 2% of GDP, reflecting increased defense spending to meet NATO obligations. The agency forecasts that the Canadian federal debt-to-GDP ratio will be close to 43% in the fiscal year 2025-26 and gradually rise to 46% over the next ten years. Looking back at the 2010s, this ratio in Canada remained low at around 30% until the COVID-19 pandemic caused a surge in spending. Bartlett stated that he does not currently believe that the credit rating will be immediately downgraded.