Madam Speaker, our government continues to manage Canada's public finances responsibly. I know the member opposite seems to disagree with that, but he should remember that our debt service costs are the lowest in the G7 when compared to GDP, as 0.6% of GDP is the cost to service the national debt. Also, contrary to what the member has said, the International Monetary Fund has rated Canada number one in the world in terms of budget balance and also gives Canada a number one ranking in the G7, expecting the largest GDP growth in 2025.
In fact, Canada has done fairly well in the grand scheme of things. The COVID-19 pandemic had a massive impact on the world economy. There were lots of losses of revenue and lots of interruptions to supply chains. It was one of the biggest economic dips one could see, probably at least in the last 100 years. We have recovered quite quickly from that, which is good news for Canadians. Our government is quite proud of our record of support to Canadians during that time, which has allowed us to recover quickly.
Some of that debt, obviously, Canada now services, but at a much lower rate and with a AAA credit rating, which we have maintained. We also know that Canada is leading the G7 in achieving a soft landing from the postpandemic surge in inflation and high interest rates. The Bank of Canada was the first central bank in the G7 to cut interest rates since the recent global hiking cycle, first to cut it twice and first to cut it a third time.
This is something I think all Canadians should recognize. Certainly the member opposite should admit that it is a very positive sign for Canada's recovery postpandemic that we are the first country to do three rate cuts with our central bank. The Bank of Canada has said that Canada's budget has stuck to its fiscal guardrails that were set out in last year's fall economic statement, and that was exactly why inflationary pressures were alleviated from the economy. It said the government managed its resources in such a way as to ensure that those interest rates could start to come down faster.
This is helping people who have a mortgage coming up for renewal. It is helping people with variable rate mortgages immediately. It is helping people looking to buy a first home. This is helping business owners from coast to coast to coast who may be carrying debt. Interest rates are falling because inflation has come down. It has come down for many months in a row, from over 8% to now 2%, which is right at the Bank of Canada's target rate.
This is really good news for Canadians. Things are looking up. Canada's economy is recovering. I know that the member opposite and I can debate fiercely, but I think the facts speak for themselves. Even our Parliamentary Budget Officer recently came out with a report that showcased that Canada could spend over $40 billion more per year. That is not the intention of this government, of course, but it was interesting to hear the Parliamentary Budget Officer say there is actually fiscal room there. To hear these independent experts actually say that our government has—