Jul 05, 2022
By Angus Gillespie
As nations around the world continue their efforts to rebound from the devastating economic downturn brought on by the pandemic in early 2020, Deputy Prime Minister and Minister of Finance Chrystia Freeland remains optimistic about Canada’s ability to lead the way in terms of international economic recovery.
Speaking in Brampton on Tuesday, Freeland says both the IMF and the OECD rank Canada number one in expected economic growth over the next two years.
The greatest threat to Canada’s economic recovery will be taming out-of-control inflation and there are some who feel the Bank of Canada’s strategy is likely to cause a recession.
The Canadian Centre for Policy Alternatives says rapidly raising interest rates to lower inflation to the central bank’s 2% target, could cause significant economic damage, including the loss of up to 850,000 jobs nationwide.
The research institute says the Bank of Canada could potentially reduce the risk of sending the economy into a recession if it tweaks its target inflation rate from 2% to 4%.