Wednesday 9 October 2013

2013-43 Our top man is confident, IMF less so

The minister of finance, Jim Flaherty, is confident the US will resolve the debt ceiling problem
This article lists important announcements in the next few weeks.
October 16: "Mr. Flaherty is expected to deliver his fiscal update — a recalibrating of economic growth and revenue projections — some time after the Speech from the Throne on Oct. 16."
October 23: Bank of Canada Monetary Policy Report. Here is the link to previous reports

The IMF published its bi-annual World Economic Outlook (WOE) 
Here is the summary

"Global growth is in low gear, and the drivers of activity are changing. These dynamics raise new policy challenges. Advanced economies are growing again but must continue financial sector repair, pursue fiscal consolidation, and spur job growth. Emerging market economies face the dual challenges of slowing growth and tighter global financial conditions."

Here is the summary for Canada


"The Canadian economy grew at an annual rate of 1¾ percent in the first half of 2013, driven by a rebound in the export and energy sectors, as well as private consumption. The economy is projected to expand at slightly more than 1½ percent in 2013 and 2¼ percent in 2014, as net exports and business investment benefit from the U.S. recovery and more than offset slower consumption growth. The balance of risks to Canada’s outlook is still tilted to the downside, emanating from potentially weaker external demand. Moreover, household debt remains historically high, which could amplify the negative growth impact of adverse shocks to the economy. Policies need to continue to support near-term growth while reducing domestic vulnerabilities. Fiscal consolidation, particularly at the provincial level, must proceed as planned to rebuild fiscal space against future shocks. The current accommodative monetary policy stance remains appropriate, with gradual tightening expected to begin in the second half of 2014."
 

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