Ottawa, February 1, 2011
2011-011
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The Honourable Jim Flaherty, Minister of Finance, today met with Canada’s leading private sector economists to gather their views on economic prospects for the country. The economists confirmed the Government’s economic planning assumptions remain on track.
“Our top priority continues to be the economy,” said Minister Flaherty. “With the economic recovery still fragile, we must remain focused on creating jobs and economic growth, while balancing the budget in the medium term.”
Since Budget 1994, the Department of Finance has used the average of private sector economic forecasts as the basis for fiscal planning. In producing its forecast for budget planning, the Department surveys private sector forecasters for their views on the main economic variables, such as gross domestic product, the unemployment rate and interest rates.
“Our Economic Action Plan has proven to be a dynamic, ambitious and successful strategy in response to an unprecedented global crisis,” said Minister Flaherty. “While the first phase of our Government’s extraordinary response is nearing its end, our Economic Action Plan will continue to play an enormous role in reaching the economic potential of this country and increasing the living standards of Canadians well into the future.”
The Department surveyed 15 leading private sector forecasters in December 2010. Overall, the economic outlook is broadly consistent and on track with the September survey published in the Update of Economic and Fiscal Projections.
The economists agreed that the average economic forecast from the survey was a reasonable planning base for the continuation of Canada’s Economic Action Plan. Budget 2011 will include an updated fiscal forecast, reflecting revisions from private sector forecasters and other fiscal and economic developments.
“After having achieved so much, we must continue to focus on economic growth and stay on course to create more jobs, an even stronger economy, and an even higher quality of life for Canadian families. By continuing to implement our job-creating, low-tax plan we are withstanding whatever global economic winds bring our way,” said Minister Flaherty. “Our medium-range goal of a balanced budget is an achievable one, supported not by overly optimistic forecasts but by the prudence we have shown in the past and the discipline and values we share with Canadian families that are leading Canada forward.”
For further information, media may contact:
Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
