The Government of Canada presented its new budget on 19 March 2025, which includes the allocation of 15 billion Canadian dollars to build new homes and support affordable housing in order to tackle the housing crisis.
An additional 10 billion Canadian dollars were invested in renewable energy and green technologies. Strenghtening the healthcare system is also emphasized in the new proposal, featuring a 5 billion Canadian dollar allocation for the sector.
In addition, new tax breaks for SMEs will be introduced to encourage innovation and job creation.
The government is forecasting a GDP growth of 2.1% in 2025, the inflation is expected to be around 2.3%, while the unemployment rate is projected at 5.8% by the end of the year.
Why is it important for Hungarian business?
Housing and green investment programmes could open up new opportunities for Hungarian companies. The budget aims to strenghten economic stability in Canada, which is important for bilateral trade relations.
With the new tax incentives, Canada could be more attractive to Hungarian technology SMEs.
In summary, Canada’s 2025 budget not only addresses internal economic challenges, but it also offers new opportunities for international partners.
Investing in green technologies and housing projects could be of particular interest to Hungarian businesses as they can ensure stable and sustainable growth in the long term.
Based on the budget decisions, Canada remains an attractive destination for investors and we expect further strengthening of Hungarian-Canadian economic relations.
