Balanced Budget By 2016 – What a good idea!
Canada is now taking steps to implement a new five-year plan to cut government spending and reduce its budget deficit from C$53.8 billion last year to only C$1.8 billion in 2014 and achieve a balanced budget by 2016. Australia’s central bank has now raised its benchmark interest rate in 4 of its past 5 meetings to a level of 4%. Australia has been increasing exports of iron ore and other raw materials and is now on track to see a small trade surplus by the end of 2010. If the U.S. doesn’t take steps soon to follow in the footsteps of Canada and Australia, instead of Zimbabwe, we could see massive emigration out of this country.
Canadian Growth Accelerated to 5% in the Final Quarter of 2009
Canadian Budget for Fiscal 2010-11 Tabled in the House of Commons
The second year of the federal stimulus plan is on track. Federal spending restraint will be implemented to achieve fiscal balance by fiscal 2014-15, with no tax increases planned.
The Canadian economy kicked into recovery mode in the second half of 2009, following the path blazed by the recovery in the U.S. economy. Indeed, Canadian growth accelerated to 5% in the final quarter of 2009, and that was without any contribution from the inventory cycle. The stage is set for strong Canadian growth in the first half of 2010.
With this backdrop, the Canadian Finance Minister presented the fiscal 2010-11 budget to the Canadian House of Commons on March 4. Basically, this is a “steady as she goes” budget that stays on track for the second year of stimulus measures, ranging from personal tax cuts to infrastructure spending, housing incentives, and funding for science and technology.
The budget attains fiscal balance over the next four years mainly through a freeze in spending by federal government departments. There are no tax increases.
Bottom line: The underlying assumptions are credible, and the finance ministers’ plan for medium-term fiscal stability makes a lot of sense. The Canadian dollar has been moving up lately on strong growth in Canada, and it could see further upward momentum in the second quarter of 2010 as the Canadian economy picks up speed.
Canada’s Government Fiscally Sound Thinking
Canada May Sell Some Government Assets to Raise Revenue to Pay Down Deficit
Saturday, March 6th, 2010
Canada continues to show why they’ve done so well while other countries have struggled during the economic crisis, as in another smart and bold move, the Canadian government is looking to divest itself of assets after a period of time of going over all its operations.
On the cbc.ca website, Flaherty stated: “There are some opportunities there for some privatizations of businesses that one questions why the government is in them anymore. So we’ll look at those and I expect that in the next year we’ll be able to make some announcements.”
Flaherty clarified things a little more, adding, “It’s actually an asset review. Why does the government own A or B or C? Why are we in that business? Do taxpayers really need to own this?”
Saying there would be information coming out in the near future, Flaherty didn’t get into the specifics of what assets would be considered no longer needed by the government and what the government was expecting to receive from selling them.
It does show the need for all nations to take similar measures, as the people can no longer support the gigantic governments and their programs any longer. The budget deficits show that.
So the idea to cut back on spending and programs is a great step by the Canadian government, showing they have the will and wisdom to know they need to limit the size of government in order to be fiscally sound.
source The Financial Advisory
Canada’s Prospects Outshine Realities Challenging U.S.
A smaller deficit leaves Canada in a better position to take advantage of the rebound in the global economy
Canadians have long tended to define themselves by what they are not: Americans. As Finance Minister Jim Flaherty prepares to deal with the fiscal cost of the recession, that distinction is taking on new meaning.
Canada – “One of the Safest Countries to Invest”
According to Dun & Bradstreet’s Global Risk Indicator, Canada is considered one of the worlds safest countries to invest, due to the relatively mild slowdown experienced as a result of the global credit crisis. In addition, the “Canadian Business Prosperity Potential Index” (October 2009) ranks Canada first in the G7 for the likelihood of a strong and healthy economy in the year 2020.
AAA credit rating: In response to Canada’s improved fiscal balance sheet and excellent long-term growth prospects, the country has enjoyed a AAA international credit rating (the highest rating) from Moody’s Investors Services since 2002.
In the mid-1990s, Canada’s total net debt-to-GDP ratio was the second highest in the G7. Today, it is the lowest. The Economic Intelligence Unit projects Canada’s inflation rate of 2.1% to remain the same for the next five years, compared to 3.2% for the U.S.
The Kootenays, Eastern BC Enjoyed a 14.9% Increase in Sales
The Kootenays
Eastern BC saw a more moderate market rebound than the rest of the province. Sales rose 26.6%, and began to firm up prices by as little as 1.7% for a detached home and as much as 33.8% for an attached home. Overall, activity is lower than Q3 2008 levels. Compared to a year ago, unit sales are lower by 10.7% and dollar value has decreased 8.2%.
In contrast to the quarterly comparisons, the number of sales month to month decreased in every region except for the Kootenay region, where sales increased 14.9% in September. The Fraser Valley lead the seasonal downturn, with the number of sales declining 19.6% in September, compared to August 2009. In September, sales on Vancouver Island declined 13.4%. In Greater Vancouver, they fell 8%, in the Okanagan they fell 4.9% and in the BC North/Northwest, sales fell 3.3% compared to August. Fewer sales were largely the result of a typical seasonal slowdown.
Canada’s Economic Advantage – An Extraordinary Record
“Canada is better placed than many countries to weather the global financial turbulence and worldwide recession. Its resilience can be attributed to three factors: First, a track record of sound macroeconomic policy management has left the country in prime form at the beginning of the global turmoil Second, the authorities responded proactively to the crisis Third, the focus on financial stability. ”
Charles Kramer, Division Chief, Western Hemisphere Department, International Monetary Fund. March 2009
Take Canada’s prudent fiscal policy, low inflation, interest and unemployment rates, and a corporate tax framework that is among the best in the world. Factor in Canada’s status as an emerging energy superpower, the only stable and growing producer of this scarce commodity. Add to that the country’s strategic investments in technology, education and healthcare. The result is perfectly ideal conditions for businesses to grow and prosper. (read more)
Canada – Banks You Can Bank On!
Banks You Can Bank On
The global economic crisis may be deepening, but Canadian financial institutions remain resilient. For the second year in a row, the World Economic Forum’s Global Competitiveness Report has found that Canada has the soundest banking system in the world. Canada’s well-regulated financial institutions, banks, trust companies, cooperatives, insurance companies and stock exchanges, have demonstrated stability and competitiveness that has made their services popular around the world. The financial sector has become one of Canada’s major export earners since the worldwide liberalization of financial regulations. Canada’s other financial institutions are equally impressive, offering investment opportunities that are both lucrative and safe.
Support When You Need It
Canada’s Export Development Corporation (EDC) provides trade finance and risk management services to Canadian exporters and foreign investors.
(read more)
More than 2900 New Homes Sold Year on Year
BC Interior Updates – More than 2900 New Homes Sold YTD
MPC Intelligence has recorded a distinct upturn in sales activity throughout the Lower Mainland with sales of new home product reaching nearly 2900 homes. Further to the return of housing sales, we have also observed that the return of product to the market has subsided, translating to a more stable environment for completions moving through the summer. In fact, only 346 homes were returned to the market during the second quarter, many of which were subsequently absorbed by end users.
Quote from: Andrew McMillian – Senior Development Analyst – MPC Intelligence Inc
China and Canada Share Optimism about the Future
In late 2008, 42 percent expressed confidence about the future.
This optimism was patchy, however, with citizens in India (79% confident), China (78% confident), Australia (73% confident), Canada (66% confident), and the Netherlands (61% confident) expressing the greatest confidence, with between 61 percent to 79 percent of respondents seeing a brighter future.
In Japan only 14 percent of people were confident about the future. This number edged up to 21 percent in France, 25 percent in the Czech Republic and 28 percent in Russia.