Prime Minister Stephen Harper speaks at the Toyota automotive plant in Cambridge, Ontario on Wednesday January 23, 2013. THE CANADIAN PRESS/Frank Gunn
January 23, 2013 - 9:46 AM
CAMBRIDGE, Ont. - Prime Minister Stephen Harper is lowering expectations when it comes to Canada's economy, saying a global financial slowdown is affecting the country's growth.
The prime minister spoke after the Bank of Canada downgraded its economic growth outlook to 1.9 per cent for the year just ended and 2.0 per cent for this year.
The central bank also said it will likely have to keep interest rates at super-low levels for longer than expected in the face of the surprisingly weak economy.
Harper says his government downgraded its growth forecast in the fall due to changes in the world's economy — something he says is having "some fiscal impact" on Canada and the pace of job creation.
But Harper says despite the setback, Canada continues to create jobs and is faring relatively well compared to other countries.
He says Canadians need to look past fluctuations in the global economy and focus on what can be done to create long-term prosperity.
News from © The Canadian Press, 2013