Province Provides Economic and Fiscal Update: Impact of COVID-19 in Manitoba


The Manitoba government released its economic and fiscal update assessing the impact of the COVID-19 pandemic, citing an expected deficit for 2020-21 in the range of $2.9 billion, with a downside risk of a deficit of up to $5 billion in the event of a prolonged economic downturn.

Manitoba Finance is planning for three economic scenarios:  a quick economic rebound or ‘V’, a gradual economic rebound or ‘U’, and a long, limited recovery or ‘L’.

Under the ‘V’ impact scenario, the 2020-21 summary net debt is projected to exceed $29 billion with a net debt to GDP ratio at nearly 41 per cent. This is up from 34.2 per cent forecast in Budget 2020. Higher interest costs alone on this new debt amounts to $70 million more per year, which is equal to building three new schools each and every year going forward.

Manitoba’s economy is expected to decline by approximately five per cent this year with an expected loss of revenues in the range of $1.5 billion this year and over $1 billion next year.

Manitoba’s road to recovery will focus on two strategies: continued investments in public health preparedness and increased investment in jobs and growth. Click here to view the Economic and Fiscal Outlook. Visit the Province of Manitoba website for programs and resources for businesses and non-profits.