Canadian economy has stabilized, growth has begun: Minister Flaherty

On Thursday June 11, the Bank of Canada declared the recession in Canada was over and that the economy is expected to bounce back twice as strongly as the American Economy. The Bank of Canada went on further to estimate an economic growth of 1.3% in the current period and growth of 3% in the fourth quarter.  The announcement was taken with caution by the general public.

However, today Thursday July 23, Federal Finance Minister Jim Flaherty made a similar announcement. Mr. Flaherty was quoted saying “the Canadian economy has stabilized and recovery has started” and that as a country “we’re moving into a period of modest economic growth”. The minister went on further to explain “consumer confidence is relatively strong and growing, we are seeing good home sales numbers (and) some improvement in retail sales.”

Both the Bank of Canada and the Finance Minister have now made similar announcements declaring the end of the recession in Canada, however varying in degrees of optimism. While the bank of Canada is pronouncing the recession over the Finance Minister is merely suggesting that Canadian economics are going in the right direction.

Both parties are unanimously certain that the Canadian economy will be recovering much sooner than the American economy. Jim Flaherty’s opinion on the matter was that “Canada went into the recession much later than the United States (and) will come out more strongly than the United States, because our fiscal fundamentals are stronger we weren’t running big deficits in Canada.”

As a whole the Bank of Canada and the Finance Minister are certain that the Canadian economy is vastly improving however, both warn that the system is still fragile and can still be affected by implications from financial systems in the United States and Europe which are not recovering as successfully.

http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b233097723