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

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 indicates that Canada’s macroeconomic prospects remain sound, with economic growth forecast to average about 3.5% this year and 3% 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.”

The IMF reviews economic developments and policies of each member country, usually on an annual basis.

“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.”