Uncle Steve is looking onward and upward:
Faced with complaints he wasn’t doing enough to soothe a nervous nation, Harper offered a detailed, if unemotional, dissertation on the economy.
“For Canada, this crisis does offer opportunity,” Harper told more than 400 people at a joint gathering of the Brampton and Mississauga boards of trade.
“Ultimately, it is an opportunity to position ourselves so that when the economic recovery comes, we’re among the first to catch the wave.”
The Prime Minister said that the government, though projecting a budget deficit for the next few years, is in the best financial shape of all G7 governments.
Harper noted that while Canada’s economy shrank at a 3.4 per cent annualized rate in the fourth quarter of 2008, it was half the decline experienced by the United States and Europe, and only a quarter of the devastating drop in Japan.
He said Canada’s stable banking system, low debt, low inflation rate and skilled workforce puts the country in a position of “significant comparative strength” to ride out the downturn.
“I say to you, as business people, as community builders, as citizens, if there ever was a time to put away that legendary Canadian modesty, it is now,” Harper said to applause.
Alas, the facts (yeah, those pesky things) belie Harper’s feigned deadpan optimism:
The parliamentary budget officer says the Canadian economy is doing even worse than published figures would suggest.
Kevin Page says in a new assessment of the economy that last quarter’s 3.4 per cent contraction in gross domestic product doesn’t begin to reflect how far Canada’s performance has fallen.
He says an even better indicator is gross domestic income, which measures Canadians’ purchasing power, and that shows a plunge of 15.3 per cent in the fourth quarter over the previous three months.
Oh, and about that 3.4 per cent figure so heartily humped by the PM?
The report says even the often-cited GDP figures which finds the U.S. economy shrinking by 6.2 per cent in the fourth quarter compared to Canada’s 3.4 per cent are misleading.
Those are annualized figures, Page notes, adding that compared to a year ago, Canada’s GDP is down 0.7 per cent and the U.S. by 0.8 per cent, almost identical records.
Don’t opportunistically and immodestly grab your surfboards just yet, kids — the wave of economic recovery is likely to crash long before it crests.
Related: Michael Ignatieff: The Harvey Dent of Canadian politics.
Recommend this post at Progressive Bloggers