Reuters reports that the International Monetary Fund (IMF) said that Canada's economy is likely to rebound this year as long as COVID-19 is brought under control, but the government should introduce a 'fiscal anchor' to ensure credibility in the management of the public accounts. The IMF forecast economic growth of 4.4% this year after a 5.4% decline in 2020.

"The size and scope of policy support in Canada has been unprecedented" during the pandemic. The recent sharp rise in public debt increases the importance of clearly specifying a medium-term fiscal anchor ... to guard against a potential weakening of credibility in the fiscal framework," the IMF said.