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Canada's AAA Rating Secure Despite Rising $612 Billion Debt

7/22/2025

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Summary

Story summary

Randall Bartlett, Deputy Chief Economist at Desjardins, asserts Canada can sustain its AAA credit rating amid rising debt.
For the 2025-2026 fiscal year, Canada plans to borrow $612 billion, with a projected deficit of $61.9 billion for 2023-2024.
Defence spending will increase to 2% of GDP, adding $9.3 billion, with a goal of 5% by 2035.
Canada’s net debt remains low compared to G7 nations, though gross debt stands at 112.5%.

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Story summary

Randall Bartlett, Deputy Chief Economist at Desjardins, asserts Canada can sustain its AAA credit rating amid rising debt.
For the 2025-2026 fiscal year, Canada plans to borrow $612 billion, with a projected deficit of $61.9 billion for 2023-2024.
Defence spending will increase to 2% of GDP, adding $9.3 billion, with a goal of 5% by 2035.
Canada’s net debt remains low compared to G7 nations, though gross debt stands at 112.5%.