While the Federal 2013 budget or the (more interestingly named) Economic Action Plan delivered on March 21, 2013 was not earth shattering in any way, it is interesting to note how well Canada is performing relative to other countries in the G7. According to the EAP, The Canadian economy has experienced the best performance among the Group of Seven (G-7) countries over the recovery, with the strongest record of economic growth and job creation. 950,000 jobs have been created since July 2009, the majority of which are full time positions in high wage industries. Additonally, Canada is only G-7 country to also have more than fully recovered business investment loss during the recession. And although the recovery has been broad based, investment in the manufacturing sector has been particularly strong.
The EAP also notes that while GDP growth over the next five years remains unchanged, expected growth for 2013 has been revised to 1.6% down from 2.0%. This will be offset by higher estimated growth between 2015 and 2017. Consequently, economists expect lower inflation in 2013. The CPI inflation in January 2013, compared with the prior year, was 0.5% while inflation for all of 2013 is expected to be lower than average at 1.3%. They also expect that the Canadian dollar will remain at par with the US dollar.
The 2013 budget introduces and extends certain initiatives for small business, while also impacting taxes payable for small business owners: