Canadian Finance Minister Jim Flaherty was optimistic about the North American and global economies on Wednesday, saying he noted small signs of improvement. He also said Canadian bond and capital markets were strengthening and that the United States would make significant progress in stabilizing its banking system next month. “There are some good signs. We see some stability in the economic performance, some resilience in China, GDP (gross domestic product) anticipated growth in India of 6 percent, … so we are seeing some strength in some of the large emerging economies, but there is a significant degree of uncertainty that we face,” Flaherty said in Ottawa. The finance minister maintained his forecast of a GDP decline in Canada of 2.7 percent this year, saying government fiscal stimulus was now reaching the economy. His initial prediction was made in January's federal budget. “We've made the best assumptions we can,” Flaherty told reporters. “We're seeing some small encouraging signs in the Canadian economy and in the United States as well.” “The Americans are proceeding with their stress testing of their banking system. That's going to be a major step forward during the month of May. So these are encouraging signs,” the finance minister said. Flaherty's comments came ahead of meetings by the Group of Seven (G7) and Group of 20 (G20) finance ministers and central bank chiefs in Washington on Friday and Saturday.
