IMF Reports Recognize Government's Plan Is Driving Economic Growth, Helping to Build an Economy That Works for Everyone
June 25, 2019 – Ottawa, Ontario – Department of Finance Canada
In its latest reports on Canada's economy, the International Monetary Fund (IMF) has affirmed the success of Canada's plan to invest in the middle class and those working hard to join it.
Finance Minister Bill Morneau today welcomed the IMF Article IV Staff Report, which finds that as a result of the hard work of Canadians and the Government's plan to invest in the middle class, Canada is now home to one of the strongest economies in the G7, with the lowest unemployment rate on record.
The IMF also recognized Canada's efforts to boost productivity growth, linking it to government actions that help make Canadian businesses more competitive and give Canadian workers more confidence about the future. These include renewing the North American Free Trade Agreement, opening the Canada Infrastructure Bank, and introducing new incentives to drive business investment and create more good, well-paying jobs for the middle class.
Canada's financial sector is also functioning well, supported by a strong regulatory and supervisory system, according to the IMF's Financial Sector Assessment Program report. The report finds that Canada's banking and insurance sectors remain sound, and notes that measures taken by the Government have helped reduce risks and vulnerabilities in the housing market.
The Government will consider the findings and recommendations of both reports as it continues to build an economy that works for more Canadians.
"It's great to see international groups like the IMF recognize that the fiscally responsible investments we're making in the middle class are helping drive economic growth and make a real difference in the lives of Canadians. It confirms what we've known from the very beginning: if you focus on helping the middle class and people working hard to join it, rather than those who are already well-off, you can build a strong economy that works for everyone."
- Bill Morneau, Minister of Finance
Canada is expected to be the second-fastest-growing G7 economy in 2019, and tied for the fastest growing in 2020. Canada also has the lowest net debt-to-GDP (gross domestic product) ratio among G7 countries.
Under the Government's plan, hard-working Canadians have created over 1 million new jobs, most of them full-time, driving the unemployment rate to its lowest levels in more than 40 years. This includes especially strong employment gains by women.
The Canada Child Benefit is helping families with the high cost of raising children by putting more money in the pockets of 9 out of 10 Canadian families, and helping to lift nearly 300,000 children out of poverty.
More than 9 million Canadians are benefitting from the Government's middle class tax cut, which gives them more money to save or spend on the things they need.
A more generous Canada Workers Benefit is putting more money in the pockets of low-income workers—encouraging more people to join and stay in the workforce, and offering real help to more than 2 million Canadian workers.
Historic investments in infrastructure, including the National Housing Strategy, are building stronger communities and helping more Canadians find a safe and affordable place to call home.
The IMF's Financial Sector Assessment Program (FSAP) provides a comprehensive and in-depth analysis of a country's financial sector, which provides IMF member countries with an assessment of the stability of their national financial system and adherence to international regulatory standards and codes.
The FSAP report, prepared every five years, states that Canada has one of the largest and most developed financial systems in the world, enjoying regained momentum following the slowdown driven by low oil prices in 2015–2016, as well as solid overall growth and international expansion since 2014.
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