Updated economic scenarios anticipate plausible outcomes for the pandemic through 2022
Winnipeg, MB – The City of Winnipeg’s financial status and forecast report to August 31, 2021 discloses a projected deficit in the tax-supported operating budget (General Revenue Fund) of $16.6 million and an additional shortfall of $10.6 million in Transit. This report also notes an estimated $84.3 million in COVID-19 financial impacts to the City, which is $23.1 million more than what had been anticipated for 2021. Both the financial status and forecast report and economic outlook will be presented at the meeting of the Standing Policy Committee on Finance on October 15, 2021.
“Despite budgeting for significant financial impacts due to COVID-19 this year, the City will need to draw on the Financial Stabilization Reserve Fund to end 2021 in a balanced position,” said Councillor Scott Gillingham, Chairperson of the Standing Policy Committee on Finance. “The City remains focused on prudent fiscal management with the aim of achieving financial recovery. There will be more challenges on the horizon as the financial pressures on the City caused by the pandemic will continue through next year, resulting in difficult decisions needed in the 2022 budget process.”
The City’s economic outlook for Fall 2021 uses new economic data to further analyze the impacts of COVID-19 on business, employment, housing, and other areas. The latest outlook also includes updated forecast scenarios that propose plausible outcomes for the pandemic through 2022.
“Winnipeg has seen a positive economic recovery from the pandemic throughout 2021, but that recovery has been uneven across industries due to changes in human behaviours and public health measures,” said Tyler Markowsky, City Economist for the City of Winnpeg. “Given COVID-19 is a global pandemic which, according to leading epidemiological research, will only be brought under control once the global population is largely vaccinated, it is reasonable to assume based upon current information we will be dealing with this pandemic for the foreseeable future.”
The City’s financial update is publicly available through the Decision Making Information System (DMIS).