Tuesday, January 1, 2008

...A Low Bar

PM Harper again is lowering expectations for the Canadian economy. There are only two reasons he would do this, that I can think of . First, so that he can take extra credit for any good economic performance in the coming year. Second, so he that he can blame any economic problems on environmental regulations. Either way the strategy is completely different than most American politicians who act like economic cheerleaders whenever their party is in power. You would think that this would send a bad impression for people looking to invest in Canada. Take this article from a Chinese based website:

OTTAWA, Dec. 31 (Xinhua) -- Canadian Prime Minister Stephen Harper reiterated his concern on Monday for Canada's economy in 2008, saying his priority in the New Year would be to shelter Canadians from uncertain global economy.

"We know there is considerable uncertainty in the world economy, in the American economy and we've seen very strong performance from our economy so far," he told reporters in Mississauga, Ontario.

"So obviously, our wish for the year is we're able to sustain that momentum and shelter as best we can Canadians from any fallout of global economic problems," he said.

Harper's comments marked another year-end warning from the Conservative government that the Canadian economy is headed for a year of turbulence, due to tighter financial markets and the fallout from a slowing U.S. economy.

With unemployment rate at a 30-year low, inflation under control and a booming housing market, Canada's economy has been robust for the past several years.

But the strong Canadian dollar and the sluggish U.S. economy may cause a slowdown in Canada's economy in the New Year, Harper said in a recent interview.

Get the full version here

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