Canada leads the world in economic recovery, offers best investment conditions

“Canada is leading the world in the global economic recovery,” said Minister of Finance Jim Flaherty. A report released yesterday highlights Canada’s strong economy, sound fiscal position, and favourable foreign investment conditions.

The report titled “Canada’s Global Economic Leadership: A Report to Canadians” was released just as Canada prepares to host the G-8 and G-20 Leaders’ Summit later this week. Canada, as host, is well-positioned to take a leadership role at the summits because its financial situation and policies are the envy of countries facing crippling deficits. Talks at the summit are expected to centre around how to prevent another global financial crisis and Canada’s financial system can serve as a model for reforms in other nations.

Emerging from the global recession, the first quarter of 2010 showed Canada’s strongest economic growth in 10 years. “Our Government has responded to the recession with the right policies to stimulate the economy and create jobs. We have lowered taxes, invested in infrastructure and training, and boosted support for workers and families,” said Minister Flaherty.

Canada is the only G-7 country to show an increase in employment over last year; Canada’s decline in output during the recession was the smallest of all G-7 countries, and Canada is the only G-7 country to have virtually recouped the loss in output during the recession. Canada is also far advanced on the key priorities facing G-20 leaders, including fiscal consolidation, trade liberalization and financial sector reform.

“We’re open for business, creating more and better jobs today and for the future,” said Finance Minister Flaherty. Minister Flaherty also notes that Canada has kept its economy open for investment from all around the world, resisting protectionism and taking down barriers to trade.

According to the Economist Intelligence Unit, Canada will be the number one place to do business in the G-7 over the next five years. Canada is creating more sustainable prosperity by reducing taxes and opening doors to foreign trade and investment. “This year, Canada will have an overall tax rate on new business investment that is the lowest in the G-7,” Minister Flaherty said.

“Financial markets around the world are sending clear signals that public debt in many countries is far too high. I am proud to say that Canada’s federal deficit will be virtually eliminated by 2014,” said Immigration Minister Jason Kenney. This makes Canada an ideal investment destination.