Observers expect little to have changed between Jim Flaherty's March budget and today's second run at it. And on many fronts, there's little need to change it from the pre-election version.
Jobs, however, are another matter, particularly as the United States hits a slow stretch.
The new majority government is in an enviable position compared to its counterparts across the globe. Consider Europe's struggles, for example, or the threat by Moody's Investors Service to put the U.S. debt rating under review if politics block a higher debt ceiling.
"Since last fall, Canada's domestic stability has made the expansion relatively easy to forecast and easier still to manage," said Mark Hopkins, a senior economist at Moody's Analytics.
"Unemployment has drifted downward, core inflation has remained low, and financial markets have been booming. All this has prompted fiscal and monetary authorities to act far more conservatively than their G7 counterparts, embracing inaction as their best strategy."
Mr. Hopkins is right that unemployment has drifted down, but "drifted" is the key word. Unemployment is running at 7.6 per cent - and that's not expected to change much when Statistics Canada releases the May jobs report this Friday - and the youth jobless level is above 14 per cent. Some economists believe Friday's report could even show an increase in the national unemployment rate to 7.7 per cent.
Full Article
Source: Globe & Mail
Jobs, however, are another matter, particularly as the United States hits a slow stretch.
The new majority government is in an enviable position compared to its counterparts across the globe. Consider Europe's struggles, for example, or the threat by Moody's Investors Service to put the U.S. debt rating under review if politics block a higher debt ceiling.
"Since last fall, Canada's domestic stability has made the expansion relatively easy to forecast and easier still to manage," said Mark Hopkins, a senior economist at Moody's Analytics.
"Unemployment has drifted downward, core inflation has remained low, and financial markets have been booming. All this has prompted fiscal and monetary authorities to act far more conservatively than their G7 counterparts, embracing inaction as their best strategy."
Mr. Hopkins is right that unemployment has drifted down, but "drifted" is the key word. Unemployment is running at 7.6 per cent - and that's not expected to change much when Statistics Canada releases the May jobs report this Friday - and the youth jobless level is above 14 per cent. Some economists believe Friday's report could even show an increase in the national unemployment rate to 7.7 per cent.
Full Article
Source: Globe & Mail
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