Canada's Economic Action Plan is Working

The economy continues to be the most important concern of Canadians.

The latest numbers from Statistics Canada show that Canada’s GDP increased again in May. This continued economic growth shows yet again that our government’s Economic Action Plan is working. In the last ten of the past twelve months we have seen economic growth. More than 400,000 new jobs have been created over the past year, a record amount coming out of a recession. These facts are evidence that our federal government’s rapid response (both fiscal and monetary) to the recession that started in September 2008 is working well.

Our federal government’s response to the recession was unmatched in the world. Thanks to sound regulatory policies and the stimulus provided by the Canada’s Economic Action Plan, Canada had the smallest contraction in real GDP among the G-7 countries during the recession.

Since the recovery has begun, Canada has also recovered almost all output lost during the recession, again, a claim that no other G-7 country can make. According to Bloomberg, Canada is the first country to return to pre-recession employment levels (Canada First in G-7 to Recover Great Recession’s Job Losses: Chart of Day, July 9, 2010).

Amid a global economy that is being jeopardized by instability in European markets and weak confidence in the United States, Canada is leading the economic recovery.

The world has taken note of Canada’s response to the global recession and praised the Canadian banking system. The World Economic Forum ranked Canadian banks first in the world for soundness. Responsible business and lending practices ensured that Canada’s recovery begun quickly and continued at a sustainable level. This year Canada will have lowest overall tax rate on new business investment among the G-7 countries. Furthermore, by 2012 Canada will also have the lowest statutory corporate income tax rate in the G-7.

The future is also looking bright for Canada. Both the International Monetary Fund (IMF) and the Organization for Economic Co-operation and Development (OECD) forecast that Canada’s economic growth will lead G-7 countries, this year and next. Our enviable economic position has been recognized around the world. The Los Angeles Times recently declared that,

“Americans have almost never looked to Canada as a role model … But … on such critical issues as the deficit, unemployment … and prospering in the global economy, Canada seems to be out performing the United States. And in doing so, it is offering examples of successful strategies that Americans might consider.”

While there is much to be optimistic about, caution is also in order. The global recovery remains fragile, and just as external factors brought the global recession to Canada’s shores, the debt crisis in Europe demonstrates that Canada is not an island, and that economic circumstances elsewhere can impact our economy here.

While the figures, percentages, and projections that make the front pages of the business sections are important, it is ordinary Canadians and their families that are affected by these numbers. It is their concerns about the economy that remain my and the federal government’s top priority.

If I can be of any assistance, do not hesitate to contact me at our Fergus office at chongm@parl.gc.ca or at (519) 843 7344.

Michael Chong is the Member of Parliament for Wellington-Halton Hills and can be reached through his website

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