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Wednesday, 14 November 2012

UPDATE HIGHLIGHTS CANADA’S ECONOMIC RESILIENCE AMIDST GLOBAL UNCERTAINTY


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The Honourable Jim Flaherty, Minister of Finance, today stressed that the Canadian economy continues to be resilient at a time when the global economy remains highly uncertain. The Minister made this comment as he released an update of the Government’s economic and fiscal projections, which shows that Canada remains on track to return to balanced budgets over the medium term.

“The commitment to manage public finances in a responsible manner has been a key element of our Government’s comprehensive long-term agenda to foster strong, sustainable, long-term economic growth and the creation of high-quality, value-added jobs for Canadians,” said Minister Flaherty. “ Our Government is striking the right balance between returning to balanced budgets over the medium term and continuing to invest in the key drivers of economic growth and job creation.”

The Minister noted that the Canadian economy has experienced one of the best performances among Group of Seven (G-7) countries over the recovery, more than recouping the output lost during the recession and outperforming all other G-7 countries in job creation. In addition, Canada is the only country in the G-7 to have more than fully recovered all of the business investment that was lost during the recession.

At the same time, however, the Minister noted that, “While Canada’s economy is still growing, we are not immune to the economic uncertainty beyond our borders and the economic challenges faced by some of our largest trading partners. Global weaknesses beyond our control today carry serious consequences for Canada that are affecting our economy and our fiscal projections.”

The Update of Economic and Fiscal Projections illustrates the benefits of the Harper Government’s commitment to control expenditure growth, with growth in program spending forecast to be well below the growth rate of revenues for this and the next five years. As a share of gross domestic product, program spending is expected to steadily decline, gradually returning to pre-recession and pre-stimulus levels.

“Today’s Update demonstrates that the Harper Government remains firmly focused on controlling growth in government expenditures, and implementing Economic Action Plan 2012 in order to create jobs, investment and long-term prosperity,” the Minister concluded. “We will not lose this focus. To build a stronger Canada, we will continue to take the necessary steps to reinforce our fundamental strengths and the potential of this great nation.”

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