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Ottawa, November 26, 2002
2002-096

International Monetary Fund Praises Canada’s Economic Resilience and Policies

Related document:

• International Monetary Fund, 2003 Article IV Consultation with Canada - Statement of the IMF Mission, November 15, 2002.

Canada’s sound economic and fiscal policies have played a key role in fostering economic growth in 2002, the International Monetary Fund (IMF) stated in a report released today.

“The IMF statement underscores what many domestic and international economic forecasters have been saying for several months,” said John Manley, Deputy Prime Minister and Minister of Finance. “Canada’s sound fiscal and monetary policies have helped our economy post robust growth during a period of international uncertainty.”

The IMF’s assessment of Canada’s economic, fiscal and monetary policies is contained in the Statement of the IMF Mission to Canada. The statement notes that “following a modest output decline in late 2001, a strong and broad-based recovery has been achieved, and Canada’s real GDP growth has outstripped that in all other G-7 countries.”

The IMF statement indicates that Canada’s macroeconomic prospects remain sound, with economic growth forecast to average about 3.5 per cent this year and 3 per cent in 2003.

At the same time, the statement cautions that concerns about the strength and durability of the U.S. economic recovery, along with vulnerabilities in global financial markets and geopolitical risks, mean that the global macroeconomic environment is “highly uncertain.” In this context, the statement notes that “the authorities’ re-affirmation of their commitment to budget surpluses and debt reduction is commendable.”

As required by Article IV of its Articles of Agreement, the IMF reviews economic developments and policies of each member country, usually on an annual basis. The IMF Mission’s statement is released at the discretion of the country being reviewed. Since 1998 Canada has released this statement in recognition of the importance of the IMF’s economic surveillance activities, and as an expression of Canada’s commitment to ensuring that these activities are transparent.

Attached is a copy of the IMF statement. It is also available on the Department of Finance Web site at www.fin.gc.ca. The IMF will release a full report on Canada early next year.

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