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Budget 2003
Economic picture
February 18, 2003
Ottawa, Ontario
Canada’s economic performance continues to be stellar despite two years of
global economic weakness and uncertainty. We led the G-7 in growth in 2002 and
we are expected to do the same this year.
We are outperforming the United States and many of our major trading
partners. We are the only G-7 country expected to record a surplus in 2002 and
2003. We are projecting balanced budgets or better for the next two years.
We have created more jobs than any other G-7 nation in 2002: 560,000 – the
largest twelve-month level gain on record. More than 60 per cent of these jobs
were full time and gains were seen in every region and among all age groups. By
comparison, in the United States, employment decreased by 229,000 in 2002.
Private sector forecasts expect Canada’s economy to grow by 3.2 per cent in
2003 – the highest rate of growth in the G-7. It is expected to increase to
3.5 per cent in 2004. The IMF and the OECD both predict Canada will lead the G-7
in growth this year and next.
Canada has now posted five consecutive surplus budgets. We have reduced the
federal debt by $47.6 billion. Our federal debt-to-GDP declined to 46.5 per cent
in 2001-02.
Budget 2003 projects balanced budgets in 2003 and over the fiscal plan to
2004. These are backed up by the $3-billion Contingency Reserve and economic
prudence. If we do not need it, we will use the Contingency Reserve to reduce
the debt.
Personal disposable income per capita has risen 13% since 1996.
Our standard of living has grown faster than that of any other G-7 country.
Over the 1997-2002 period, real GDP per capital grew by an average rate of about
3% per year.
Building a Canadian Advantage
Canadians have been increasingly successful in creating a more productive,
competitive and sustainable economy. Budget 2003 builds on this success by:
- investing $1.7 billion in 2002-03 and over the next two years, to further
strengthen research and innovation in Canada;
- investing $285 million in 2002-03 and over the next two years, to improve
skills and learning opportunities for Canadians;
- building on the Government’s $100-billion Five-Year Tax Reduction Plan
to improve our tax system and provide incentives to work, save, and invest;
- investing $3 billion to promote sustainable development and a healthier
environment.
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