Officials: Canadian businesses need to protect themselves from foreign economic turmoil
October 25, 2011
Global economic turmoil, particularly in the U.S. and Europe, continues to threaten even the most stable markets. Analysts worry that a default on Greek debts, which is approaching inevitable, will compromise Europe's entire banking and finance system and throw the world economy back into recession. Meanwhile, in the U.S., high unemployment and an anemic housing sector have provided a seemingly impassable barrier to a more robust economic recovery.
The conditions make for a particularly challenging period for relatively stable economies such as Canada's. As the last to fall into the recession and one of the first to emerge, Canada has fared far better than its G7 counterparts. However, analysts and public officials are beginning to worry that foreign economic trouble may soon find its way into Canada, underscoring the need for business owners to protect themselves.
Minister of State for small business and tourism Maxime Bernier warned this week that because of the situation in the U.S. and Europe, businesses exporting their products may be adversely affected by the situation.
Meanwhile, federal finance minister Jim Flaherty pointed out the need to cut regulatory burdens to the sector so businesses can save funds to cushion themselves against a potential downturn. In Europe last week, Flaherty also asserted the need for Canada to align its banking and fiscal policies with other countries to assuage market stress.
"We want them to have more money in their pockets to be able to achieve their dream," he said, according to the Epoch Times.
Canada has also been busy making cuts to corporate taxes, which have been steadily decreasing each year, even as the country expects to have a balanced budget by 2014.
Bernier also took time to acknowledge Canada's entrepreneurs, who he said generate a substantial portion of the country's economic growth and business identity.
"They are the ones who create jobs and create wealth in this country," the source quotes him as saying, "and we can be proud of that. We need more entrepreneurs."
While Canada's policies may help protect its markets for the time being, the prospect of a global double-dip recession remains in question. Accordingly, experts are paying close to attention to how governments and elected officials handle the crises, which now seem up to policymakers more than financiers.