By 2028, New Brunswick's net debt-to-GDP ratio will be 30% or lower.
New Brunswick’s net debt-to-GDP ratio increased from 15.9% in 1981 to a high of 40.9% in 2016. An increasing ratio indicates that the province's net debt is growing faster than the economy, which reduces the financial sustainability of the provincial government.
The most recent cause for an increase in the net debt-to-GDP ratio was the 2008 recession. The ratio was on a downward trend before and was actually below the goal of 30% or less, but after the recession hit, it began increasing steadily up to the 40.9% peak in 2016.
A decreasing net debt-to-GDP ratio means that the economy is growing faster than debt is accumulating.
Considering the net debt-to-GDP ratio has been decreasing since 2016, the goal is for it to continue decreasing. If New Brunswick maintains the same rate of decrease (~1.17% per year for the past 3 years), it could be able to reach the goal of below 30% by 2028.