Flaherty boosts Canadian economic outlook - Macleans.ca
 

Flaherty boosts Canadian economic outlook

While Harper calls for a tricky G20 “balancing act”


 

In New York City to deliver a speech today, Finance Minister Jim Flaherty hiked his projection for Canadian economic growth over the next few years. By 2014, he said, the economy will be $24 billion bigger than his department previously expected. That reflects a survey of 15 private economic forecasters, who estimate Canada’s gross domestic product will grow by 3.5 per cent this year, up from 3.1 per cent in March, when Flaherty delivered his most recent federal budget. Meanwhile, Prime Minister Stephen Harper, in an interview setting the stage for the G20 summit later this week in Toronto, said world leaders must send two arguably contradictory messages at the meeting—talking up stimulus and restraint at the same time. “I think that what markets are looking for,” Harper told Reuters, “is that we understand that we have to continue to deliver stimulus now but that in the mid-term countries, particularly highly indebted countries, have got to have credible plans to bring their fiscal houses in order. So it’s a balancing act.”

CBC News

Reuters


 
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Flaherty boosts Canadian economic outlook

  1. "…we understand that we have to continue to deliver stimulus now but that in the mid-term countries, particularly highly indebted countries, have got to have credible plans to bring their fiscal houses in order. So it's a balancing act.”

    One of the countries Mr. Harper must be talking about is the United States, yet, their own President has already called for continued stimulus. As it stands, the United States government has a total gross debt of $13.09 trillion; $42,000 for each of their citizens and over 90% of their GDP. By comparison, the UK debt is 78.5% of their GDP, Germany stands at 80% and Italy stands at 120%. The most shocking debt to GDP of any member of the G20 is Japan with a debt to GDP ratio of over 200%.

    Very soon there is going to be very little that the countries of the G20 can do for anyone. G20 economic growth will be strangled by the debt load of its members.

    http://viableopposition.blogspot.com/

  2. The PBO estimated 2% GDP in 2010.
    Looks like a win by Flaherty over Page this time.

    • There's 6 months left to go yet. You're still counting eggs, not chickens.