Flaherty: Canadian Recession is not Finished

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Flaherty rarely misses the chance to remark on the strength of the economy he has overseen for over 3 years declined to call an end to the recession Tuesday, even though the Bank of Canada says the gross domestic product will resume growing this quarter, three months sooner to boot.Flaherty is not ready to declare the recession is over even if Canada’s economy is showing signs of life.

He has also noted that declaring that the recession over might be “premature”.

Flaherty notes that there are signs that the economy has stabilized and that there are beginnings of a recovery however he would not put it any stronger than that.

Flaherty has said that we need to be cautious and should be continuing the stimulus to the economy in order to avoid the danger of some slowness recurring and that Canada’s economy does not fall into any negative territory.

Statistics Canada released a survey which showed that public institutions and industries are heavily back by government funds and have spent there capital on upgrades  for this year.

The economy will still require months before it can recover, not to mention annul the various anti recessionary measures that the government have taken. We will have to expect the repercussions of the stimulus in the economy to bring about high interest rates. This obviously does not help the unemployment rate which is still high and is suggested will still be considerably high.

In all, the Canadian recession in the eyes of the Bank of Canada is over. But the politicians in our beloved city of Ottawa believe the recession is not yet over.

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