IMF chief praises Canada’s fiscal space for capital spending

Published 16/10/2025, 17:22
© Reuters.

Investing.com -- International Monetary Fund Managing Director Kristalina Georgieva stated that Canada has the fiscal capacity to make productivity-enhancing investments during a news conference at the IMF meetings in Washington, DC, on Thursday.

"Both Germany and Canada recognize that in this very testing time, they need to use their fiscal space," Georgieva said, noting that these two nations are in stronger fiscal positions than other G7 countries like the United States and Italy, which should focus more on reducing their public debt.

The IMF chief also expressed approval for Prime Minister Mark Carney’s plan to permanently shift the budget to the fall and separate capital investments from operating expenses on the government’s balance sheet.

Georgieva welcomed Canada’s intended focus on housing, infrastructure, energy and other strategic projects, saying these investments would help boost productivity. She also acknowledged Carney’s strategy to run deeper deficits while redirecting expenditures toward the defense sector and creating favorable conditions for business investment.

Finance Minister Francois-Philippe Champagne is scheduled to deliver the budget on November 4.

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