Ottawa, November 27, 2013
2013-152
The Honourable Jim Flaherty, Minister of Finance, today welcomed the concluding statement of the International Monetary Fund’s (IMF) annual Article IV Mission to Canada, which highlights the Government’s fiscal and financial sector policies and commitment to return to balanced budgets.
“With our Economic Action Plan’s focus on jobs, growth and long-term prosperity, I am pleased to see that, once again, the IMF is maintaining its positive outlook for Canada,” said Minister Flaherty. “By reaffirming its support for the Government’s plan to return to balanced budgets in 2015, the report provides further support for our Government’s fiscal priorities.”
The 2013 Article IV Mission to Canada statement confirms that Canada’s financial sector is healthy, noting that Canadian banks are “characterized by elevated capitalization, strong profitability, and high quality of assets,” and that stress tests conducted by the IMF “demonstrate the resilience of Canadian major banks and insurance companies to credit, liquidity, and contagion risks arising from a severe stress scenario.”
The IMF also continues to endorse the measures taken by the Government to promote the long-term stability of Canada’s housing market, noting that, thanks to these measures, market activity has “converged to more sustainable trends”.
The IMF reviews the economic developments and policies of each member country, usually on an annual basis. The IMF’s report is released at the discretion of the country being reviewed. The Government supports this release in recognition of the importance of the IMF’s surveillance activities, and as an expression of Canada’s commitment to ensuring that these activities are transparent.
The IMF’s full statement on Canada, which will be followed by a full report in February 2014, can be found on the IMF website.
