Yukons economy poised for growth in the midst of the COVID-19 pandemic

The economy remains resilient as supports for Yukoners continue

Yukon Premier and Finance Minister Sandy Silver tabled the 2020–21 First Supplementary Estimates in the Legislative Assembly.

The $92.2 million supplementary budget Bill includes an increase of $95.9 million in Operations and Maintenance spending and a decrease of $3.7 million in gross capital expenditures. A total of $52.1 million is recoverable from the Government of Canada and other third parties.

The Bill includes proposed economic and social supports as well as expanded health services for Yukoners in response to the COVID-19 pandemic. The substantial increase in recoveries from Canada demonstrates the collaborative response between the federal government and the Government of Yukon to address urgent needs arising from COVID-19.

In addition to COVID-19 related spending, the Bill includes funding to begin implementing the Putting People First plan for health and social care; an extension of the Early Learning and Child Care Agreement with the Government of Canada; additional operational capacity at the Mayo airport; and upgrades to Yukon’s energy grid.

The 2020–21 Interim Fiscal and Economic Update was also released showing Yukon is one of only two Canadian jurisdictions expected to see real Gross Domestic Product (GDP) growth in 2020.  Yukon’s real GDP growth is projected to grow 0.8 per cent, down from the 6.2 per cent forecast in March, with growth owing to strong momentum from last year and robust strength in the mining sector.

Protecting health and safety and supporting Yukoners through these unprecedented times has been the top priority of the government throughout the pandemic. It is vital to ensure Yukoners can maintain their businesses, access reliable testing and health care, and continue to feel safe and secure in their community.

The Interim Fiscal and Economic Update shows that Yukon’s economy remains strong compared to other provinces and territories, despite significant losses among the hardest hit sectors. Yukon’s fiscal outlook has been revised downward but shows that the government is well-positioned to remain resilient during this period of uncertainty.

More great reading