Canadian economic growth may be slower than expected, Flaherty says

OTTAWA – Finance Minister Jim Flaherty says he may have to downgrade his growth projections for Canada given the general weakening of economic conditions around the world.

The minister told reporters Thursday that his budget had already anticipated slow growth for Canada, but that a modest reduction may be in order in the upcoming fall economic update.

In the March budget, the government projected growth of 2.1 per cent this year and 2.4 per cent in 2013.

Meanwhile, the minister says he has also warned his provincial counterparts about the importance of keeping their finances in check.

Flaherty made the comments in light of a new Macdonald-Laurier Institute report that some provinces — particularly Ontario and Alberta — are headed to a European-style crisis in the next 10 to 30 years if their policies do not change.

However, Flaherty says he still believes provincial finance ministers are committed to bringing down their deficits and overall debt burdens.