One of the more persistent symptoms of the global pandemic is how it affects a country's economy. Despite some hitches and concerning forecasts, Canada's credit rating has stayed strong. That also means the job market will likely bounce right back.
In a July 22 press release, S&P Global Ratings, one of the world's largest credit-rating agencies, maintained Canada's AAA score, the highest that can be given to a country, adding that the outlook for the nation's economy is stable.
According to the report, the agency based its decision on "Canada's high wealth, economic diversification, and ample fiscal and monetary buffers," which it said will help the country get through the COVID-19 pandemic.
It also noted that Canada is predicted to make enough of a recovery next year to make up for any of the losses it suffered in 2020.
S&P also said that the labor market will rebound, meaning that the jobs lost to the pandemic should eventually return, even if it takes some time.
The country has already recovered 40 percent of the jobs by adding 1.2 million between May and June.
In Canada, the data currently support that the spread of COVID-19 has been largely contained and a tentative recove… https://t.co/sKDlt1h927— S&P Global Ratings (@S&P Global Ratings)1593529431.0
While the massive response from the government, which includes financial assistance through programs like the CERB, will likely lead to a deficit, it will pay off in the future as it comes to an end, according to the report.
"We expect that the government will prudently taper its support measures as the economy recovers next year, thereby maintaining its strong financial profile despite a higher burden of net general government debt," S&P says.
Even with the economic downturn that has come with fighting against COVID-19, the country has managed to do something very rare.
According to Bloomberg, Canada and Germany are the only G7 countries that have managed to maintain their AAA rating through the pandemic.
While there is still more work to be done for a full recovery, there is confidence in Canada's ability to weather the storm.