Canada’s economy is showing promising progress. Not long ago, inflation was soaring at 8.1%, driving up costs and putting the squeeze on budgets across the country. Member of Parliament for Guelph, Lloyd Longfield points out that “Throughout 2024, inflation has cooled to a manageable 1.6%, a clear sign that the economy is moving in the right direction.” Stabilizing prices are making it easier for Canadians to plan and save with confidence. At the same time, the Bank of Canada has been able to reduce interest rates four times in 2024, dropping from 5% at the start of the year and now sitting at 3.75, with more reductions planned early next year.
When COVID hit, inflation surged as supply chains unraveled, causing skyrocketing prices on essentials and luxuries alike. To keep inflation within the Bank of Canada’s 1% to 3% target range is a balancing act that requires carefully crafted policies to ensure the economic bounce back is steady and sustainable without fueling a price surge.
It’s like a portage
MP Longfield paints an insightful picture of Canada’s economic journey as a challenging portage. Emerging from COVID’s turbulence, the economy had to navigate the rugged terrain of inflation, supply chain disruptions, and a cost-of-living squeeze. But, like seasoned paddlers pushing through to the lake, Canadians are seeing signs of smoother water. MP Longfield says, “Inflation has receded, the economy is growing and we’re finally nearing the lake, where progress will feel easier and steadier.”
Growing the economy
There is significant international investment coming to Canada. From mining critical minerals to building cars and batteries, Canada is attracting historic investments to secure and create new jobs. MP Longfield says, “In the last four years, automotive and battery makers have announced more than $31 billion in electric vehicle manufacturing across Canada. Creating jobs around clean technology and improving the environment is where we have been focusing our efforts.” The investments are a strong vote of confidence in Canada’s highly skilled workforce, strong economy, and competitive business environment.
The federal government is setting the direction for the Clean Economy and jobs of the future to ensure Canada remains competitive in the areas where the jobs are, including health care.
Supporting Canadians
The government is stepping up to support Canadians by holding grocery chains accountable for their pricing, by pressing them to justify price hikes and pushing for fairer practices across the board. MP Longfield says, “We also want to make it easier for grocery competitors to enter the market, which could give consumers more choice and control over their grocery budgets.”
For people struggling to make ends meet, dental care often falls to the bottom of the priority list, with costs keeping parents and seniors from regular check-ups or even essential treatments. The Canadian Dental Care Plan is designed to help low and middle-income households cover the cost of dental procedures and preventative care. MP Longfield says, “Over 1 million seniors have accessed dental care through this program and we’re looking to expand the dental care program to the broader population.”
The government believes that Canadians should have access to medicine, regardless of where they live or their ability to pay. The Pharmacare Act means that there will be single-payer coverage for various contraceptives and diabetes medications. MP Longfield adds, “This is a concrete step toward the vision of a national pharmacare program that will improve the health of Canadians.”
Canada’s $10-a-day Childcare Program reduces the financial burden of childcare by cutting fees in half on the way to $10 per day, making it easier for parents by taking some of the high costs of raising children out of the equation.
The Canada Workers Benefit provides a financial boost to low-income workers by helping them cover everyday expenses with a top-up to their income. Eligible families will receive up to $2,616, while eligible single workers will receive up to $1,518. MP Longfield says, “Instead of having to get a second or third job, we’re hoping that this program will help families pay the bills without working 16 hours a day.”
Starting in July 2025, low-income individuals can apply for the Canada Disability Benefit, a new monthly benefit of up to $200 and is intended as financial relief for people with disabilities living in poverty.
The government has also eliminated interest on Student Loans.
Canadians are continuing to receive quarterly Canada Carbon Rebates which puts more money in the pockets of Canadians.
Canada Pension Plan & Old Age Security
The government is ensuring that seniors aren’t left behind, by indexing Canada Pension Plan and Old Age Security benefits above the rate of inflation to help them enjoy a more secure and stable retirement.
Meanwhile, wage growth in Canada is also outpacing inflation, with an average increase of about 4.6%. With paycheques growing faster than prices, Canadians are better positioned to manage their finances.
Housing
Housing is an area where all three levels of government in Guelph continue to work together to provide supportive housing, affordable housing, and initiatives to encourage private-sector housing starts. MP Longfield says, “We have several channels in the housing sector that we are working on together to try to get a range of housing units built. Our government has been working with Guelph Mayor Cam Guthrie on the Housing Accelerator Fund which supports municipalities in getting housing built. Housing starts in Guelph have been increasing, with the city meeting or exceeding its housing targets.”
To make home ownership more affordable, the government introduced the Canadian Mortgage Charter which allows homeowners to shop around at renewal for the most affordable lender. It also provides tailored relief if they’re struggling to meet their mortgage payments.
Meanwhile, the new Tax-Free First Home Savings Account (FHSA) is now helping 750,000 Canadians save for their first home.
As inflation remains in the target zone and the economy continues to grow, Canadians are starting to feel the positive changes in their daily lives. What’s even more encouraging is the federal government’s commitment to support those who need it most. MP Lloyd Longfield says, “With a range of targeted support programs, there’s a strong safety net to ensure individuals don’t fall through the cracks. I’m proud of the programs our government has introduced to create a more inclusive and sustainable economy. By prioritizing people, we’re not just growing the economy, we’re helping people get through challenging times, and building a strong, more resilient Canada.”
Contact MP Lloyd Longfield at (519) 837-8276 or via email: [email protected].
Learn more about what MP Longfield is doing online here.