Ottawa, December 22, 2010
Archived - IMF Supports Government of Canada Commitment to Return to Budget Balance
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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, which strongly supports the Government’s fiscal plan to return to balanced budgets over the medium term.
In its 2010 Article IV Consultation with Canada report, the IMF commends the Government for the credible framework for macroeconomic policy, its strong policy response to the crisis and the resilient financial system, all of which have enabled Canada to exit the crisis on a strong footing.
“It is particularly encouraging to see the Fund’s favourable assessment of our fiscal plan,” said Minister Flaherty.
The report notes Canada has weathered the global recession well, reflecting both its strong fiscal position before the crisis and its significant fiscal stimulus during the crisis. Labour markets have been a particularly bright spot, the report said, with Canada being the only Group of Seven (G-7) country to both recoup the jobs lost during the recession and make year-over-year employment gains.
“The report provides strong support for our plan to return to budgetary balance and commends the recent decision to extend the deadline on some infrastructure projects,” said Minister Flaherty.
“I also welcome the IMF’s strong endorsement of the Government’s policies to promote Canada’s long-term growth prospects, notably infrastructure spending, corporate income tax cuts, and progress towards implementation of a Canadian Securities Regulator.”
The IMF report also lauds the Canadian financial system, noting that its resilience has been a key factor in Canada’s strong economic performance.
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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