Mark Carney's success as Canada's new prime minister hinges on his ability to address a series of economic challenges left by his predecessor, Justin Trudeau. Carney steps into office amid a backdrop of high deficits, increasing national debt, and immigration levels that exceed the country's capacity to integrate newcomers. Additionally, he faces a bloated federal public service and the implications of Trudeau's carbon tax, unrealistic electric vehicle mandates, and a lack of focus on developing new oil and gas pipelines.

These issues have created a difficult environment for Carney, who has acknowledged that Canada's economic struggles predate the presidency of Donald Trump. During the Liberal leadership race, he noted that the economy was weak long before Trump took office. The situation is further complicated by the fact that Canada has experienced its worst economic growth since the Great Depression under Trudeau's government.

Carney's approach appears to differ from Trudeau's, particularly regarding carbon pricing. He has shifted his stance from believing that carbon taxes were insufficient to now supporting them, although it remains to be seen if his solutions will significantly diverge from Trudeau's policies. Carney served as an economic advisor to Trudeau during the pandemic and was appointed chair of Trudeau's economic growth task force last September.

During the election, Carney proposed $130 billion in new spending over four years, with total deficit spending projected at $224.8 billion. This figure is 71% higher than Trudeau's forecast of $131.4 billion in deficit spending for the same period. Carney claims that his administration will limit operational spending increases to less than 2% annually, compared to the 9% increase under Trudeau. He plans to use the savings from reduced operational spending to invest in new infrastructure projects.

Canadians will soon receive more details about Carney's plans in an upcoming federal budget, which has yet to be scheduled. This budget will provide insight into whether Carney intends to break from the economic policies of the past decade or continue along a similar path.