Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Harper Says Slowing Canada Economy to Have Fiscal Impact

Jan. 23 (Bloomberg) -- Canadian Prime Minister Stephen Harper said a slowing economy will affect the government’s finances and impede employment.

“There has been a general slowing of the economy over the past, really the past half-year so it is obviously a concern to us,” Harper told reporters in Cambridge, Ontario. “This is obviously going to have some fiscal impact on us, will have some impact on the pace of job creation.”

Canada’s economy probably had its worst six-month performance since the end of the 2009 recession in the second half of last year, as exports fell and concerns about the global expansion prompted businesses to curb spending, leading economists and policy makers to scale back their expectations for 2013.

The Bank of Canada cut its forecast for 2012 GDP growth today to 1.9 percent from an October projection of 2.2 percent, and 2 percent in 2013 from 2.3 percent.

Finance Minister Jim Flaherty, seeking to return the country to surplus while ensuring fiscal tightening doesn’t impede growth, scaled back revenue projections in a November budget update by C$7 billion ($7 billion) for the next fiscal year and by C$36 billion over five years, citing lower commodity prices.

A person with direct knowledge of the government’s budget planning told Bloomberg News the deteriorating revenue outlook is making it more difficult to bring the budget into balance as planned by 2015.

Still, Harper said that he has been encouraged by recent job gains in the Canadian economy.

To contact the reporters on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net; Theophilos Argitis in Ottawa at targitis@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.