The International Monetary Fund has released a report that forecasts continued growth for the Canadian economy.

The Staff Report for the 2006 Article IV Consultation with Canada forecasts Canadian real gross domestic product growth to be 3.1% in 2006 and 3% in 2007.

The report states that the short-term risks facing Canada are evenly balanced—recognizing there is a risk that a sharper-than-expected slowdown in the United States would affect Canada.

Against this background, the report focuses on the challenges for Canada of maintaining a balanced expansion and supporting economic flexibility and long-term growth in the face of population aging.

Jim Flaherty, Minister of Finance, welcomed the release of the IMF report.

“I am glad to see the IMF staff highlight how Canada’s macroeconomic and policy performance has continued to ‘outshine’ that of most other industrial countries,” Flaherty said.

As required by Article IV of its Articles of Agreement, the IMF reviews economic developments and policies of each member country, usually on an annual basis. The IMF’s report is released at the discretion of the country being reviewed.

The IMF’s full report on Canada and its accompanying papers can be found on the IMF website at www.imf.org.