Speaking to the Canadian Business Council in Dubai, United Arab Emirates, John Manley, minister of finance, said that the Canadian economy appears to be rebounding.

Manley conceded that the economy slipped in the second quarter, after taking hits from SARS, mad cow and forest fires. “Most private sector economists agree our second quarter was a ‘blip’. A rebound is already underway,” he said, noting, “Already a more robust U.S. recovery appears to be well underway and optimism is returning.”

He said that the economy is rebounding due to its fundamental strength, underpinned by debt reduction, low and stable inflation, an economic and social environment that fosters growth and innovation, and freer and fairer trade.

“That being said, we all continue to face a challenging economic environment — challenges that are global in nature but with local impact, underscoring the global interdependence of nations. Now more than ever, economic and social problems that affect one country can have a major impact on virtually all nations around the world,” he said.