Reports on Canadian trade and housing this coming week will, like last week’s disappointing January employment report, be closely watched by Finance Minister Jim Flaherty, who is balancing demands for economic stimulus against commitments to fiscal restraint in preparing his annual budget.
“Looking beyond the high-profile debate over changes to the Old Age Security, which is a longer term issue, the case for deeper near-term restraint is far from compelling,” argues BMO economist Douglas Porter. “Growth is now struggling and has few obvious engines of support in 2012, markets are hardly braying for austerity from Canada, and Ottawa’s finances are quietly improving faster than expected.”
“The most encouraging developments for the Canadian economy so far in 2012 are south of the border,” TD Economics economist Leslie Preston commented following news that there was virtually no job growth in Canada in January while the U.S. generated some 275,000 jobs, some 100,000 more than anticipated
“Since Canada still sends nearly three quarters of our exports to the U.S. that is encouraging news indeed,” she notes.
Sal Guatieri , a BMO economist agrees. “More jobs mean more Americans will buy more Canadian-made products.”
Original Article
Source: iPolitico
Author: Eric Beauchesne
“Looking beyond the high-profile debate over changes to the Old Age Security, which is a longer term issue, the case for deeper near-term restraint is far from compelling,” argues BMO economist Douglas Porter. “Growth is now struggling and has few obvious engines of support in 2012, markets are hardly braying for austerity from Canada, and Ottawa’s finances are quietly improving faster than expected.”
“The most encouraging developments for the Canadian economy so far in 2012 are south of the border,” TD Economics economist Leslie Preston commented following news that there was virtually no job growth in Canada in January while the U.S. generated some 275,000 jobs, some 100,000 more than anticipated
“Since Canada still sends nearly three quarters of our exports to the U.S. that is encouraging news indeed,” she notes.
Sal Guatieri , a BMO economist agrees. “More jobs mean more Americans will buy more Canadian-made products.”
Original Article
Source: iPolitico
Author: Eric Beauchesne
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