The Canadian government lost $2 billion on the energy sector, in the latest blow to the country’s economy as oil prices fall.
The drop in oil prices in recent weeks has left Canadian government revenues at a standstill and has led to layoffs and a rise in jobless claims.
The government reported Friday that the drop in crude oil prices had cost it $2,936 million.
That is down from the $4.4 billion it was projecting the year before.
The federal government said the decline in oil production was mainly due to low demand from Alberta and B.C. “The decline in crude production was primarily due to lower demand from the oil sands region and to the decline of natural gas and other fossil fuels,” said the Finance Department in a statement.
“Inflation in Canada is projected to stay above 2 per cent until 2020, which is also when the economy will be able to start recovering from the recession that started in the late 1990s.”
The federal deficit is projected at $11.6 billion, down from $14.3bn in the second quarter of the year.