Tuesday, November 25, 2008

Canada to kickstart infrastructure projects to avert recession

MONTREAL (AFP) — Canada is reviewing infrastructure projects that could be launched quickly to minimize the impact of the global economic turmoil on the Canadian economy, Finance Minister Jim Flaherty said Monday.

Flaherty said Canada is "not in a recession right now," but was not about to bounce back to full strength in the coming months.

"I think it's reasonable that we may have a technical recession... two negative quarters in a row," he said.

"Times are uncertain and the economic picture is not getting better," he admitted.

Flaherty said he had discussed possibly fast-tracking infrastructure projects with Prime Minister Stephen Harper, which could "help create jobs and stimulate economic activity.

"Canada goes into this economic slowdown in the best position of the major industrialized countries in the world because we have been prudent and responsible over the last three years," he added.

"We have paid off... 37 billion dollars (30 billion US dollars or 23 billion euros) worth of debt. The credit of the government of Canada is the best in the world, so we are in a position as a government to take various actions," said Flaherty.

"We're reviewing steps we could take in addition to infrastructure, of course, that would help stimulate the economy."

Canada is currently suffering from a decline in exports to the United States, its main trading partner, and a fall in the prices of raw materials, of which Canada is a net exporter.

Flaherty reiterated Monday that Ottawa would come to the aid of Canadian subsidiary companies of the "Big Three" US automakers -- General Motors, Chrysler, Ford -- if they have a viable plan for survival. Canada to kickstart infrastructure projects to avert recession

beritadarigunung: Remember late 90's poor days. The so called bright ones been accusing mahathir for doing similar thing.