Boivin Reiterates Canada to Balance Budget in 2015-16
Canada is on track to balance its budget by the fiscal year starting April 2015, a Department of Finance official said.
The federal government may post a small surplus that year as projected in the government’s March budget, Associate Deputy Finance Minister Jean Boivin said today at the Bloomberg Canadian fixed-income conference in New York.
Canada remains vulnerable to external shocks and the country has made progress pursuing reforms to its financial system, Boivin said.
While high levels of household debt remain a key risk to the country’s economy, consumer credit growth has been slowing, Boivin said. “If you look over the last year, the evolution has been more constructive.”
The tapering of stimulus by the U.S. Federal Reserve would be positive for Canada, as it would happen amid strong growth in the U.S. economy, the destination of about three-quarters of Canada’s exports, Boivin said.
Canada’s jobless rate will average 7 percent next year, according to a Bloomberg News economist survey with 15 responses, exceeding the rate in the U.S. for the first time in five years and eliminating an advantage touted by policy makers as evidence of the country’s stronger economy.
A separate survey about the U.S. economy forecasts a 6.9 percent jobless rate next year.
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