OTTAWA – Bank of Canada governor Mark Carney says he believes the Canada is moving toward a more sustainable economy that is less dependent on borrowing and more on investment and export sales.
The central banker says in an interview on CTV’s Question Period that while it was essential for him and governments to stimulate borrowing and spending during the global economic crisis, that phase has run its course.
He says the economy now needs to move toward business investment and export growth for future growth, and he believes Canada will do so.
The comments come after the governor and Finance Minister Jim Flaherty took part in a meeting of the world’s biggest economies in Moscow, where officials pledged not to manipulate their currencies to boost exports.
In a closing news conference on Saturday, Flaherty said the G20 economies had made progress toward balancing fiscal discipline and economic growth, but that risks remain.
As part of the rebalancing in Canada, Carney says he believes Canadian borrowing habits are moderating, and that is reflected in the ongoing correction in the housing market.
Carney says he believes the housing market will continue to cool over the next couple of years as Canadians continue to temper their appetite for debt.