- Federal government is still on track to balance budget next year
- Will keep monitoring the Canadian housing market closely but is not currently alarmed
- Says slowing export growth is behind weak labour market
- Canada needs stronger US growth to boost jobs
- Wants to learn why companies are not spending cash reserves
Finance minister Joe Oliver is speaking in Wakefield, Quebec.
That comment is one that is applicable to most economies emerging from the crisis. Confidence is the biggest reason why companies won’t splash the cash. Using the UK as a proxy once again, we’ve seen signs that businesses are willing to start spending and the effects cause economic growth to move in waves, like the herd mentality. Getting the ball rolling is the hardest part but once it does then you get a secondary boost to an economy. Despite the pick up since the crisis the sentiment is still just not there yet to see big moves in capex.
