Carney delivers an economic reality check

The governor of the Bank of Canada isn't as optimistic as Harper

While Prime Minister Stephen Harper may believe “the effects of the recession are beginning to ease,” Bank of Canada governor Mark Carney isn’t so sure. In a speech to the International Economic Forum of the Americas in Montreal, Carney cautioned attendees not to “overplay at this stage the green shoots.” “Private-sector demand,” Carney said, “has retreated and it is not imminent that it will come back with strength.” Canada’s central bank expects the U.S., China, and Japan to post positive growth numbers in the third quarter of 2009, ending the worst recession in decades. But Carney says growth will be slow so long as uncertainty over employment and mounting government debt persists.

Financial Post

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