�ȵ����

WINNIPEG – Manitoba’s 2025-26 second quarter report shows climate change-driven wildfires and droughts along with the economic slowdown from President Donald Trump’s tariffs have had an impact on the province’s bottom line.

According to a release, excluding the net costs of wildfires and Manitoba Hydro’s variance, the deficit would be $803 million, which is just slightly above the $794 million projection outlined in the budget.

The 2025-26 second quarter fiscal update projects an $867 million variance from the deficit forecast relative to the 2025-26 Budget, which now sits at $1.661 billion.

“The increase is attributed to $324 million in additional costs related to wildfire suppression and evacuation efforts as well as historic drought conditions which created a negative variance of $684 million for Manitoba Hydro relative to the budget,” the release adds.

Tariffs, trade uncertainty and economic risks associated with the wildfires have slowed forecast GDP growth to 1.1 per cent from 1.7 per cent.

“Budget 2025 projected tariffs could reduce the GDP by as much as 3.8 per cent, or $3.6 billion,” it adds. “However, Manitoba’s economy has been resilient so far in 2025, with growth primarily fuelled by strong household spending.”