Cheap Cars

Ottawa, Ontario, Canada (AHN) – Tory House leader John Baird hinted Thursday that Ottawa may extend stimulus spending beyond March 2011. The change in policy comes amid signs the national economy is still fragile as Canada continues to struggle with unemployment and slow growth.

Baird said federal cabinet members are now going to different parts of Canada to get feedback from the public on what should be done to boost the country’s economy. The feedback will be the basis of Ottawa’s decision on extending stimulus spending after March.

Local governments have complained that some projects under Ottawa’s $16 billion stimulus program of Ottawa would not finish by the March deadline due to unforeseen circumstances. They asked the federal government for some leeway in anticipation of the possibility that municipalities would have to shoulder the remaining construction costs of stimulus-funded projects not finished by March.

The anticipated end of stimulus spending was one of four reasons behind dampened expectations of Canadians. The three others are: the weaker-than-expected U.S. economy, the cooling Canadian housing sector and exhausted personal savings.

Because of these factors, the Toronto-Dominion Bank forecasts economic growth to slow to 1.5 percent for the third quarter and 2 percent for the fourth quarter. Next year, the bank expects Canada’s growth rate to remain at 2 percent, below the Bank of Canada’s 2.9 percent growth forecast.

View full post on All Stories