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Canada’s answer to Covid-19 is to spend a lot and ignore the deficit – for now



OTTAWA – Canada’s deficit is growing at the fastest pace among developed countries as it seeks to support its economy during the Covid-19 pandemic.

The Canadian authorities are betting that the aggressive approach will pay off, citing the number of jobs already restored, and say the country can afford to inject money into the economy while borrowing costs are historically low. But some economists warn that high spending could lead to a fiscal crisis, and a major rating company has already stripped the country of its A-3 rating.


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