Canada is in a strong position to weather global economic uncertainty, says Federal Finance Minister Jim Flaherty, who has the International Monetary Fund to back him up.
The IMF’s 2011 World Economic Outlook predicts Canada, along with Germany, will have the fastest growing Group of Seven (G-7) economy over the next two years.
“We are in a period when global economic activity has weakened, becoming more uneven and uncertain,” said Flaherty. “Thanks to our sound economic and fiscal fundamentals, Canada is in a better position to weather global headwinds.”
Reflecting the IMF’s lowered global growth forecast, the outlook for Canada’s growth has been revised down to 2.1% in 2011 and 1.9% in 2012, largely due to the slowdown in U.S. economic activity.
However, the report noted “downdrafts from its southern neighbour will be offset in part by relatively healthy economic fundamentals and supportive commodity prices.”
Flaherty also highlighted the IMF’s Fiscal Monitor released today, which projected that Canada will continue to have the lowest total government net debt-to-GDP ratio in the entire G-7 – 33.3% in 2016 compared with the G-7 average of 92.9%.
“We have said all along, the economic recovery remains fragile, and we are not immune to the volatile global economic environment, largely due to a problem of confidence in efforts of governments to reduce their deficits,” said Flaherty.
Flaherty said the next phase of Canada’s Economic Action Plan would preserve the country’s advantage in the global economy.
Jennifer Harrison
Twitter: JHarrisonBIV