Canada to suspend GST on select items to boost consumer confidence

The Canadian government will temporarily remove the goods and services tax (GST) on various items starting December 14 for two months. This measure aims to address a perceived economic downturn, referred to as a "vibecession," affecting Canadians' confidence. Finance Minister Chrystia Freeland noted a gap between positive inflation news and public sentiment. The GST cut is intended to boost consumer spending and improve economic feelings among Canadians. Additionally, the government plans to send $250 cheques in the spring to eligible workers. The total cost of these initiatives is estimated at $6.3 billion, which some economists believe may have limited impact on long-term economic behavior.