Americans look to Canada as an economic role model
To call these times economically uncertain would be an understatement. Every bit of good news we receive as a government must be tempered with cautious optimism. Every silver lining seems to have a cloud attached to it.
May was the tenth month of the past twelve in which Canada has seen at least some economic growth. While that growth is not sufficient reason to celebrate, very few countries can boast even that level of growth.
Both the International Monetary Fund and Organization for Economic Co-operation and Development forecast that our economic growth will be at the head of the pack among all G-7 countries this year and next.
Canada’s enviable economic position has been recognized around the world. In fact the Los Angeles Times recently declared that “Americans have almost never looked to Canada as a role model, but on such critical issues as the deficit, unemployment and prospering in a global economy, Canada seems to be out performing the United States, and in doing so, it is offering examples of successful strategies that Americans might consider.”
But it’s not all good news on Canada’s economic front. The Canadian Real Estate Association is warning that the rate of housing sales is expected to stall and even fall going forward.
In 2010 the number of homes expected to be sold will drop by just over one percent nationally with Alberta hit hardest with a projected drop of 11 percent. The red-hot market in BC is also expecting close to double digit decreases in sales numbers. Manitoba however is the only western province where there is a forecasted increase in the number of homes sold. We should see a modest increase of two percent after a 3.2 percent reduction in 2009.
The entire country, with the exception of Newfoundland, is expecting further sales reductions in 2011. National home sales numbers are expected to be down by over seven percent but Manitoba hangs in there with a reduction of less than one percent.
When it comes to housing prices, Manitoba beat the national average for 2009 and led all western provinces. This trend is expected to continue in 2010 with only Newfoundland beating the percentage increases seen in Manitoba. Again, while experts expect prices to slip in most provinces in 2011, Manitoba will see the second highest increase, second only to Newfoundland.
While the recession has certainly affected many in our province, as a whole we have weathered it well and are a model for other provinces. The eyes of the world are on Canada and as your MP and the regional minister responsible for Manitoba, I am committed to working on behalf of you and your family as we continue to climb out of the global economic recession.
