Archived - IMF Report Highlights Harper Government's Strong Economic Record

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November 26, 2014 – Ottawa, Ontario– Department of Finance

Finance Minister Joe Oliver today welcomed the concluding statement of the International Monetary Fund’s (IMF) annual Article IV Mission to Canada, which once again highlighted the Government’s successful low-tax plan to create jobs, growth, and long-term prosperity.

Commenting on the strength of the Canadian economy, the IMF Mission applauded the Government’s progress in eliminating deficits, and recent action to lower taxes for hard-working Canadian families. The IMF also said that measures taken since 2008 to ensure the long-term sustainability of the Canadian housing market have been effective. 

“Canada’s economy experienced solid growth over the past year,” the IMF Mission report stated. “An improving labor market gained momentum recently, with the unemployment rate falling to a post-crisis low of 6 1/2 per cent in October.”

The Harper Government will introduce balanced budget legislation that will require balanced budgets in normal economic times and concrete timelines for returning to balance in the event of an economic crisis. The Government welcomes the IMF recommendations that balanced budget legislation be transparent, flexible and “ensure convergence towards the authorities’ medium-term objectives, while allowing for flexibility in the face of shocks to avoid procyclicality.”

Quick Facts

The IMF’s Article IV Mission to Canada found:

  • Economic slack has been gradually declining with growth running modestly above potential in most quarters since 2013.
  • Canada is on track to balance its budget in 2015 and putting its debt firmly on a downward path. In this context, recently announced tax cuts and enhanced child benefits to support families are consistent with achieving the Government’s fiscal goals.
  • The IMF Mission added that it saw merit in using available fiscal resources to implement targeted growth-friendly measures in support of business investment and productivity.
  • Non-energy exports led the rebound in Canadian exports in 2014 owing to the firming U.S. recovery and a weaker Canadian dollar.
  • The household debt-to-income ratio has broadly stabilized since 2013.  
  • Solid growth is expected to continue.

Quote

"The IMF Mission's report is further evidence that our Government's Economic Action Plan is working. Under the leadership of Prime Minister Stephen Harper, we are delivering on our top priority: creating jobs, growth, and long-term prosperity, through lower taxes and a return to balanced budgets in 2015. It is truly a great time to be Canadian."

- Joe Oliver, Minister of Finance

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Nicholas Bergamini
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Office of the Minister of Finance
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Stéphanie Rubec
Media Relations
Department of Finance
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