Canada's fundamentals 'solid:' Flaherty
DAWN WALTON
Wednesday, July 16, 2008
CALGARY — Despite economic woes plaguing the United States and volatility in the financial markets, Canada has “solid” fundamentals that are the envy of the world, Federal Finance Minister Jim Flaherty said Wednesday.
“We are going through turbulent times. I want to assure you that Canada's economic future is bright,” Mr. Flaherty told about 400 business leaders at the Chamber of Commerce in Calgary in the afternoon “Our economic fundamentals are the strongest of the G7,” he said.
“Other nations are envious of our situation.”
Mr. Flaherty said while the world is seeing an economic slowdown, Canada's economy should not be written off or lumped in with the United States where a “significant recession” is under way.
He said Canada's job market remains strong, with only minor losses reported in June, auto sales are good and the housing market has not experienced the bubble that has hurt the U.S.
Still, he said Canada is not immune to the emerging economies of China and Brazil, the falling U.S. dollar, an aging population and labour shortage.
“These challenges are not insignificant,” he said.
Mr. Flaherty also reiterated his government's change to residential mortgage rules that eliminates the 40-year amortization with very low down payments, citing the crippling subprime mortgage crisis that has hammered the U.S. housing market.
“We want to avoid anything the Americans went through in the housing sector,” he said.
“This is a measured and responsible approach to residential housing financing in Canada,” he added.
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