Happening in North America: Growth and Budget Surplus Estimates Upped

Friday, August 24, 2007

Is this a coincidence?
A nation with quite limited defense expenses, rich in commodities, providing a social safety net that can be called one, an environmentally responsible population that favors a pragmatic style over dogmas and is so lovingly unpretentious (at least on the Wet Coast) also boasts a very healthy economy.
According to a Reuters report Canada's finance department raised its forecasts for GDP growth and the budget surplus.
It lifted its growth forecast for 2007 to a real 2.5% (2.3%) and expects now a budget surplus of at least more than C$3 billion in both 2007 and 2008, based on higher tax revenues. Canada is the only G7 member that runs a budget surplus.
From the report:
"The improved outlook stems from stronger-than-expected economic performance, as well as higher-than-anticipated revenues as suggested by year-to-date financial results. Program expenses are expected to be largely unchanged from the budget 2007 outlook."
It said the budget surplus in June was C$2.85 billion, up from C$2.26 billion in June 2006. The April to June surplus was C$6.36 billion, up from C$5.89 billion in the same period last year and more than twice the originally forecast surplus for the whole fiscal year.
It did not say how much more than C$3 billion it thought this year's surplus would be, noting that a comprehensive update would come in the autumn Economic and Fiscal Update.
The department released an updated economic forecast, which it takes from private-sector economists, to show real economic growth this year of 2.5 percent, up from the 2.3 percent forecast in the March budget. But the economists cut the forecast for 2008 to 2.7 percent from 2.9 percent.
The economists significantly boosted their projections for GDP inflation -- used to determine how much of nominal growth in gross domestic product is due to higher prices. For 2007 they saw GDP inflation of 2.7 percent instead of 1.5 percent, and for 2008 they boosted their forecast to 2.2 percent from 2.0 percent.
Consequently, nominal GDP growth, which has a strong correlation with tax revenues, has been revised up to 5.2 percent for 2007 from 3.9 percent. The figure for 2008 remains unchanged at 5.0 percent.
This would leave nominal GDP about C$20 billion higher in both 2007 and 2008 than projected in the March budget.
It looks as if the second largest country in the world outruns its big neighbour who wants to become a brother with the publicly strongly opposed security and prosperity partnership (SPP.) Demonstrators against last weekend's meeting of prime minister Harper with George Bush and Vincente Fox uncovered 3 thugs that wore the same boots as riot police, trying to agitate peaceful protesters.


Watch the video and decide yourself. Canadian police declined to further comment on the incident and arrest reports never included these 3 men. A false flag attack?


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