Brighter days are on the horizon, according to leading financial experts in Ottawa. Canada is emerging from the financial recession. According to recent statements to reporters by Federal Finance Minister Jim Flaherty, the Canadian economy has stabilized and recovery has started. Mr. Flaherty noted that consumer confidence is relatively strong and continuing to grow. This is reflected in improved retail sales and positive numbers of home sales. He added that nearly 1000 infrastructure projects are currently underway across the nation.
The Bank of Canada strongly supported Mr. Flaherty's statements, forecasting that the economy will bounce back much faster than that of the United States. The Bank predicted that the summer quarter should produce growth of almost 1.3 percent, following three consecutive quarters of contraction.
Bank of Canada officials cautioned, though, that Canadians should not become overly optimistic, and should keep the country's financial recovery in proper perspective. The tenuous financial positions of both the U.S. and Europe may continue to affect Canadians. Canadian government stimulus spending must also be rescinded at the proper rate in order to not be counter-productive.
Canada has not incurred massive deficits in recent years, thus contributing to its relatively strong financial position and its ability to recover from the recession in a shorter period of time than others. Leading bankers in the U.S. are also predicting recovery for the American nation. However, due to massive government debt, the fragile American economy has been slower to recover. The decline of the American economy has slowed its pace and analysts predict that growth will begin in the latter portion of this year.
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