April 2024 Market Update from Canada Life Investment Management

Economic pulse in Canada and around the world

The Canadian 2024 Federal budget was released in April. According to the budget, the Government expects an ongoing deficit to be $39.8 billion in 2024-25, and declining over the three years following, to $20 billion by 2028-29. The capital gains inclusion rate was raised to 66% for the high-net-worth, trusts and corporations. The Bank of Canada (BoC) held its benchmark overnight interest rate steady at 5.00%. The BoC wants to see more progress towards its 2% inflation.

Around the world, the U.S. economic growth slowed over the first quarter of 2024. Consumer and business spending slowed over the quarter. Conversely, real estate investment was a key contributor to growth. China’s trade activity dropped in March, suggesting weak global and domestic demand continues to weigh on the world’s second-largest economy.