Finance Minister Jim Flaherty has said that Canada will continue with their strategy to reduce their deficit by 2015 and will not be spending any money to instigate a recovery for the economy. However, he has said that if the global economy continues to spiral downwards then that plan will change.
Government spending not the right path to go down
Flaherty has said: “If we were to see the situation globally deteriorate in a dramatic way we would obviously do what is needed to protect our jobs and economy. We would act in a pragmatic way as we have done previously.”
Canada’s finance minister said economists believe that there will not be another global recession but said that there are risks that another may be on the cards. Jim Flaherty in an emergency meeting told the Parliament’s finance committee that government spending is not the right path to go down, he used the situation in Europe as a direct problem stating that the government spending is the partly to blame.
Mr Flaherty has said that the International Monetary Fund (IMF) have forecasted the economy in Canada as one of the strongest in the G-7 countries for this year and 2012.
Canada will maintain financial advantage
The two weeks of market madness that have occurred has meant Flaherty and Mark Carney, the head of Canada’s central bank, were called to testify before the committee. The head of Canada’s central bank has stated that the United States are unlikely to drop back into recession and expected the U.S. and European economies to grow at a slower rate than expected.
Carney has said: “Our expectation is growth is going to be lower.”
And he backed his finance ministers claim that Canada will maintain its financial advantage over other countries. Flaherty has stated that Canada is on course to balance the books by 2014-2015 with the country in position to deal with any global economic challenges.