REPORT FROM THE HILL - Finance

June 16, 2009

I am pleased to report that the International Monetary Fund’s annual review of Canada's economic developments and policies (completed in May) provided a strong endorsement of our government’s Economic Action Plan. While the worldwide economic downturn is not over yet, the actions of our Prime Minister and Finance Minister have put Canada in a good position to weather the storm.
 
To quote from the report: “The IMF supports the strong fiscal package announced [by the government of Canada] in January, which was large, timely, and well targeted, and it will buoy demand during the downturn.” According to the IMF, “Canada is better placed than many countries to weather the global financial turbulence and worldwide recession, thanks to sound policy management and proactive steps to maintain economic and financial stability.”
 
The IMF report also highlighted the strength of our banking system. In fact, Canada is widely recognized as having the soundest baking system in the world. In contrast to our major trading partners, no Canadian banks are in need of a bailout or at risk of nationalization.
 
Additionally, the IMF expressed its opinion that Canada is better placed to come out of the current economic crisis on a stronger footing than many other countries. Thanks to the actions taken by our government, Canada’s deficit will still be the lowest among G-7 countries, measured as a percentage of GDP. Our deficit will remain less than 5% of GDP while the U.K., United States and Japan will have deficits that are 10% of their GDP, or more. In assessing Canada’s projected economic growth for 2010, the IMF reported that it expects it to be stronger than in any other G-7 country.

The IMF report is a clear, unbiased confirmation that our government’s Economic Action Plan is working. The statements made by the IMF reiterate many of the things our government has been saying about Canada’s position going into the global economic downturn.

This is all very encouraging news for Canada. Our government has been working hard to help Canadians during this time of economic downturn, through actions such as continuing to keep taxes low for Canadian individuals, families, and businesses; introducing rules on credit cards to protect consumers, and providing stimulus spending that is helping to create jobs. Canadian households and businesses are in much stronger financial positions than those in other countries, and with our government’s Economic Action Plan, we will continue to combat the global recession and ensure that Canada gets through it stronger than ever.

For more information on Canada’s Economic Action Plan, please visit www.ActionPlan.gc.ca.
 
With warm regards,
 
Leon Benoit, MP