The Canadian government is out with its latest budget numbers and they're stark, thanks to much lower spending and a boost from resource revenues. The April-November budget deficit is C$3.55 billion compared to C$73.7 billion a year ago.

To be clear, a decade ago a year-long deficit of $10 billion was seen as a large number and the pre-pandemic 2018-2019 deficit was $14.0 billion. Given interest rates, the deficits are likely to tick up but there are certainly no red flags for the loonie right now. You even have to wonder if Trudeau opens up the spending taps again.

Canada deficit to GDP