Updated Economic Growth Projections From Private Sector Economists

The Minister of Finance released updated growth projections from fifteen leading private sector forecasters. The outlook has deteriorated since the last survey in March, and as a result of economic uncertainties in the United States and the prevailing situation in Europe, the forecasters believe that growth will be hampered in Canada throughout 2012.

The Minister called for decisive action to sustain global recovery on October 25th,  at the fifth annual meeting of the Toronto Forum for Global Cities. This comes after Minister's call on European leaders and the G-20 on October the 17^th in Dublin to address the current economic challenges by acting quickly and in unison and by implementing strong, consistent policies.

The Minister stated: "Events during the summer have made it clear that global economic challenges are by no means behind us. The pervasive force of uncertainty is a major inhibitor to growth, and it demonstrates the fundamental need for close cooperation in a global context.î

The Minister expressed his concern for the European debt crisis; he feels as though that is the most pressing international issue at the moment and is capable of bringing the world into another recession if immediate action is not taken. "Delays will only make necessary choices more difficultî he stated.

The Minister was also in Paris on the 15^th where he welcomed the ambitious reform policies of the European economic governance and the implementation by Euro area countries of the actions necessary to increase the capacity and the flexibility of the European Financial Stability Facility (EFSF). In fact, all the ministers believed that they have formulated a plan that will address vulnerable sectors of each economy, whereby:

- Advanced economies with large surpluses will shift to growth with a focus on domestic demand, while those with deficits will implement policies to increase national savings;

- Emerging markets will adjust macroeconomic policies to maintain growth and contain inflation;

- Surplus emerging economies will accelerate reforms to rebalance demand toward domestic consumption;

In addition, all countries will undertake further structural reforms to raise potential growth, create jobs and maintain stability in the banks and markets.

More from the Minister in Toronto: http://www.fin.gc.ca/n11/11-105-eng.asp

More info from Dublin: http://www.fin.gc.ca/n11/11-102-eng.asp