Friday, August 19, 2011
Canada on the right track: Flaherty
Stock markets are tumbling and the stumbling U.S. economy is stoking fears of global recession, but Canada is still headed in the right direction, Finance Minister Jim Flaherty said Friday.
Testifying before a parliamentary committee in Ottawa, Flaherty said Canada's economy is strong enough to weather the continuing global struggles as the government's budget and plans have set the way for stability.
"Canadians can be confident that our country is well positioned to face global economic challenges as we have done successfully in the recent past," he said.
He admitted that that Canada's second-quarter growth will likely come in under expectations - largely due to eocnomic struggles in other G7 countries - but that Canada is still on track for a balanced budget in 2014-15.
Despite the recent doom-and-gloom outlook on the world economy, he did offer a positive outlook.
"It is important to note that the global economy is in fact largely growing - albeit slowly."
The U.S. and Europe require "bold action" he added, saying they've both showed a lack of "fiscal discipline and the political will to correct it."
But Canada has played safer and smarter, putting the country in an ideal position.
"We have the strongest financial system in the world. We have strong fiscal fundamentals in the government of Canada. . . . This is a chance to seize the advantage that is Canadian."
Bank of Canada Governor Mark Carney spoke after Flaherty and expressed a similar tone of cautious optimism.
"The considerable headwinds are now blowing hard," Carney said, but added "the bank has "a "(But) the bank has a wide range of tools and policy options" to help cope with the global financial meltdown.
The Roundtable's Pat Bolland talked with Kris Sims about Flaherty and Bank of Canada Governor Mark Carney's testimony in Ottawa Friday.
http://www.sunnewsnetwork.ca/sunnews/canada/archives/2011/08/20110819-082203.html
