Ottawa, May 22, 2009
Archived - IMF Supports Canada's Economic Action Plan
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The Honourable Jim Flaherty, Minister of Finance, today welcomed the International Monetary Fund's (IMF) annual review of Canada's economic developments and policies. The report provides a strong endorsement of Canada's Economic Action Plan.
In its 2009 Article IV Consultation with Canada report, the IMF commends the Government's fiscal stimulus plan as "large, timely, well diversified and structured for maximum effectiveness." Further, the report notes that the Plan takes "steps to facilitate labour reallocation and protect the vulnerable." The report also notes that total fiscal stimulus undertaken in Canada is among the largest of any G20 economy.
"I am pleased to see the IMF's favourable report on Canada's Economic Action Plan," said Minister Flaherty.
The report notes that the global economic slowdown and financial market turmoil have hurt growth in Canada, with the U.S. downturn and weaker commodity prices weighing on gross domestic product. However, the report also states that Canada "entered the crisis from a position of strength, reflecting a track record of strong policy management that has supported underlying macroeconomic and financial stability."
"Canada is better placed to come out of the current economic crisis on a much stronger footing than many other countries," said Minister Flaherty. This opinion is shared by the IMF in its assessment of Canada's economic growth in 2010, which it expects to be stronger than in any other G7 country.
The IMF report also commends the role that strong supervision and regulation has played in the ongoing stability of the Canadian financial system amid global turbulence, while supporting the proactive steps that the Government has taken to further strengthen markets.
"I am working with my provincial colleagues to ensure that Canada's Economic Action Plan is implemented as quickly as possible," said Minister Flaherty. "I am convinced that the Plan will make a real difference for Canadians and allow us to emerge from this global recession in a much stronger position."
As required by Article IV of its Articles of Agreement, 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 report on Canada and accompanying papers can be found on the IMF website at www.imf.org.
For further information, media may contact:
Office of the Minister of Finance
Department of Finance
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